Peru Economy

Peruvian economy has experienced a structural change in the past decades. It can be characterized by reach natural resources ( Peru is the world's second largest producer of silver and third largest producer of copper.), prudent macroeconomic policies, independent central bank, fiscal surpluses and rather low public debt, strong FX reserve position and low external debt. Therefore, among Latin American economies, Peru is the second best-ranked in the 2015 World Bank’s Doing Business Survey (35th out of 189), one below Colombia at 34. However, at the same time the country is sensitive to commodity prices, and high, if reducing, poverty levels. Shortcomings also remain regarding registering enforcing contracts and starting a business. Rule of law and control of corruption are also important areas of concern, while social inequalities remain important. Moreover, dollarization of the economy is still high.

A favorable external environment, prudent macroeconomic policies and structural reforms in different areas combined to create a scenario of high growth and low inflation, what can also be proved by the report.

The Peruvian economy has been growing by an average of 5.6% for the past five years with a stable exchange rate and low inflation, which in 2013 was just below the upper limit of the Central Bank target range of 1 to 3%. For the last three years, this growth was due partly to high international prices for Peru's metals and minerals exports, which account for almost 60% of the country's total exports. Despite Peru's strong macroeconomic performance, dependence on minerals and metals exports and imported foodstuffs makes the economy vulnerable to fluctuations in world prices.

Therefore, economic position of Peru needs to be analyzed on two fronts. On the one hand, success in poverty reduction and social inclusion is crucial to guaranteeing the stable development of the country. On the other hand, institutional and macroeconomic stability is seen as capital...