1 / 9

Republic of Peru Republica del Peru Capital: Lima By Nitish Rajbhandary

Republic of Peru Republica del Peru Capital: Lima By Nitish Rajbhandary. General Information. Government: Constitutional Republic President: Alan Garcia Perez Climate: Arid and mild in coastal area, temperate to frigid in the Andes, and warm and humid in the jungle onwards.

Solomon
Download Presentation

Republic of Peru Republica del Peru Capital: Lima By Nitish Rajbhandary

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Republic of Peru • Republica del Peru • Capital: Lima By Nitish Rajbhandary

  2. General Information • Government: Constitutional Republic • President: Alan Garcia Perez • Climate: Arid and mild in coastal area, temperate to frigid in the Andes, and warm and humid in the jungle onwards. • Natural Resources: Iron ore, copper, gold, silver, zinc, lead, fish, petroleum, natural gas, and forestry. • Currency: Peruvian Nuevo Sol (PEN) • Exports: Gold, copper, fishmeal, petroleum, zinc, textiles, apparel, asparagus and coffee. • Major Markets: U.S., China, Chile, Canada, Switzerland, Japan, Spain, Netherlands. • Imports: Machinery, vehicles, processed food, petroleum, steel. • Major Suppliers: U.S., China, Brazil, Ecuador, Colombia.

  3. Characteristics • Country Area: 1,285,220 sq km (3rd largest in Latin America) • Population: 28,674,757 (July 2007 est.) (5th most populous in the region) • Population Density: 22/sq. km • Population Growth: 1.289% • Net Migration Rate: -0.99 migrant(s)/1000 population • Life expectancy: Total 70.14 / Male 68.33 /Female 72.04 • Ethnic groups: Amerindian 45%, mestizo 37 %, white 15%, black, Japanese, Chinese, and other 3% • Religions: Roman Catholic 81%,Seventh Day Adventist 1.4%, other Christian 0.7%, other 0.6%, unspecified or none 16.3%

  4. Economy GDP (PPP): $181.8 billion GDP (official exchange rate): $76.09 billion GDP (per capita): $6,400 (half of Chile) GDP Growth Rate: 6.5%/ ( 2002 – 2006 ) 5.7% GDP (by sector):agriculture: 8.5%; industry: 26.4%; services: 65% Inflation Rate: 2.1% / (2002 – 06) 1.9% Unemployment Rate: 7.2% Government Budget:revenues: $25.5 billion expenditures: $25.18 billion; including capital expenditures of $1.8 billion Debt: 33.8% of GDP Current Account Balance: $1.515 billion FDI inflows (% of GDP): 2.8

  5. Fiscal Policy • Current Account balance: ‘02 (-$1,150 m), ‘03 (-$958 m), ‘04 ($19.3m), ‘05 ($1,105 m), ‘06 ($2,456 m) • Very low tax base hence low flexibility. • Aims towards increasing tax up to 17% of GDP from current 15% by eliminating tax exemptions and altering tax code. • Tax code will be pro- contributor and pro-investor. • Cutting tariffs to encourage competition. • Increase quality of public spending by simplifying programs.

  6. Monetary Policy & Exchange Rate • Compared to other Latin countries, subdued inflation at an average of 2%. Main worry with real GDP rising. • Diversifying economy and falling debt levels. • Interest rates might increase by 25 basis points to 4.75% from 4.5% last year. • Rapid growth in spending with concentration on dollar lending a cause for long-term concern hence reserve requirement of 30% for dollars as compared to 6% for sol. • Exchange rate system is free-floating since the 90’s. • Sol expected to depreciate by 1.5% next year.

  7. Social Policies • Suffrage: 18 years; universal and compulsory until the age of 70. • Big emphasis on education. Over 30,000 schools throughout the country. • Rising crime rates and illegal narcotic industry due to penetration by the Colombians. • Plans to increase impact of social programs by emphasizing basics like food, clean water and education. • Decrease administration costs.

  8. External Relations • Border conflicts with Chile have been settled but still disputes over maritime limits in the Pacific Ocean with Chile and Bolivia. • In October 1998, Peru and Ecuador signed a peace accord to resolve border differences. • Member of the Andean community of Nations with Bolivia, Colombia, Ecuador and Venezuela (in process of leaving). • Free Trade agreements with individual Mercosur nations. • Associate member of Mercosur. • Member of Asia-Pacific Economics Cooperation (APEC) forum and also a member of UN since 1949. • Strong relations with U.S. and major trade partner. • U.S. – Peru Trade Promotion Agreement and Peru – India Trade pact in process.

  9. References • Background note: Peru. (2007). Retrieved 5/19, 2007, from http://www.state.gov/r/pa/ei/bgn/35762.htm • Historical Exchange Rate Regimes. (2000). Retrieved 5/20, 2007, from http://intl.econ.cuhk.edu.hk/exchange_rate_regime/index.php?cid=16/ • Country Study: Peru. (2005). Retrieved 5/19, 2007, from http://lcweb2.loc.gov/frd/cs/petoc.html • CIA world factbook: Peru. (2007). Retrieved 5/19, 2007, from https://www.cia.gov/library/publications/the-world-factbook/geos/pe.html • The Economist:Country Briefings: Peru (2007) Retrieved 5/19, 2007, from http://www.economist.com/countries/Peru/profile.cfm?folder=Profile-FactSheet

More Related