Peru- Economic Analysis

Peru- Economic Analysis

Peru's Gross Domestic Product in 2011 was $ 176.66 billion; this represents 0.28 % of the world's economy. The GDP of a country is equal to the total expenditures of final goods and services produced within the country in a given period of time. Peru is ranked at #39 by the IMF according to its GDP's size ("International Monetary Fund"). The GDP growth rate for Peru was 6.8% ("World Development Indicators"). The Gross Domestic Product per capita was at US $ 10233. 95 and the average household income per year is $ 4,400. These statistics mean that a product with a low-cost emphasis will be likely to succeed, as the mass of the people do not have a high disposable income.

Peru has a total of 1,988 km of railroad and is the second highest railway in the world; it runs inland from Callao and Lima through to La Oroya and Huancayo. The train system has been in place since the time of Spanish rule and currently most of the country is covered and many new Metro projects are also underway, also long distance buses are the exclusive way to travel through cities. Peru has 1,500 miles of coastline along its western edge. Ports and harbors in the Pacific Ocean are Callao, Chimbote, Ilo, Matarani, Paita, Salaverry, General San Martin and Talara. Lake Titicaca has a port of Puno and the Amazon basin has Iquitos, Pucallpa and Yurimaguas. The port of Callao is the biggest port by traffic in Peru followed by the port of Iquitos in the Amazon basin. The national highways in Peru are called the Pan American Highway runs the country from north to south beside the coast, total miles of road are 85,900 km out of which nearly 45,000 km are paved.

Peru's communication devices are fixed phone lines 3,443,479 and mobile lines 32,305,455 ("Osiptel"); the major players in the telecom industry are Movistar, Claro, Nextel and Viettel. Movistar is the biggest of the four with 12.9 million subscribers and has accessibility to 850 MHz UMTS (Universal Mobile Telecommunications System), GSM-850 and other 3rd generation communication systems. There were 7,636,400 Internet users in the country in the year 2008 and the penetration rate was 26.2% ("Internet World Statistics ").

Major industries are Fishing, Mining and Agriculture, Peru produces 10% of the world's fish catch and ranks 5th in the world in gold production, 2nd in copper and among the top 5 producers of lead and zinc. The country has an ongoing developing manufacturing sector; it represents 23% of GDP and includes construction and textiles. Tourism is one of the emerging industries in Peru and the government along with the private sector has dedicated much of their energies to boosting tourism in Peru. Peru's GDP compositions by sectors are: Agriculture (7.8%), Industry (33.9%) and Services (58.4%) ("FIELD LISTING: GDP - COMPOSITION BY SECTOR").

Major Exports from Peru include Gold (21%), Gold content (17%), Refined copper and copper alloys