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Consumer price index

The consumer price index in December 2010 was registered at 102.2, an increase of 2% as compared to the last year. This increase in the index was a rise in prices of food and petroleum.

(Source: Central Bank)

Wholesale price index

Wholesale price index (WPI) declined to 1.76% in 2009 as compared to 8.91% in 2008.

(Source: Central Bank)

Interest rate on savings deposits

The interest rate on savings deposits in 2010 Q3 was 0.6% for domestic currency and 0.3% for foreign currency as compared to 1.1% and 0.6% in 2009.

(Source: Central Bank)

Interest rate on Time deposits

(Source: Central Bank)

Money supply (currency in circulation)

Money supply M3 and M2 in the third quarter of 2010 Q3 was PEN 122,810 million and PEN 74,491 million.

(Source: Central Bank)

Public debt

The total public debt for 2009 was USD 33,750 million corresponding to 26.5% of GDP. Public debt is estimated to be USD 35,238 million and USD 36,285 million in 2010 and 2011.

(Source: Ministry of Finance)

Government expenditure

The total non-financial expenditure amounted to PEN 74,706 million in 2009 corresponding to 19.6% of GDP. The total non-financial expenditure for 2010 is estimated to be PEN 84,272 million, an increase of 12.8% as compared to previous year. For 2011, total expenditure is estimated to be PEN 89,049 million.

(Source: Ministry of Finance)

Official exchange rate

The exchange rate of the country in January 2011 was registered at PEN 2.78 per dollar as compared to PEN 2.86 per dollar in January 2010.

   (Source: Central Bank)

Government finances

Sovereign debt dynamics

Fiscal balance

The fiscal deficit in 2010 is estimated at PEN 478 million as compared to deficit of PEN 3,172 million in 2009.

Total revenue

The current revenue of the general government for 2009 was PEN 71,120 million corresponding to 18.6% of GDP. The major contribution i.e. 75.7% of revenues were collected from taxes, followed by 14.9% and 9.4% of revenues from others and contributions respectively.

(Source: Ministry of Finance)

The current revenue for 2010 is estimated to be PEN 83,195 million. General government revenue will increase by 16.9% in 2010. The current revenue as a percentage of GDP is estimated to be 19.8% in 2010.

(Source: Ministry of Finance)

Tax revenue

(Source: Ministry of Finance)

The total tax revenue is estimated to be PEN 62,460 million and PEN 67,307 million in 2010 and 2011 respectively. The total tax revenue as a percentage of GDP is estimated to be 14.9% and 15% in 2010 and 2011.

(Source: Central Bank, Ministry of Finance)

Current account balance

Peru is expected to register a current account deficit of USD 1,853 million in 2010, whereas in 2009 there was a surplus of USD 247 million. Current account balance as a percentage GDP is estimated to be -1.2% and -1.6% in 2010 and 2011.

(Source: Central Bank)

(Source: Central Bank pg 246, Ministry of Finance)

Balance of payments

(Source: Central Bank, Ministry of Finance)

Labour Force

The total labour force for the year 2009 was 4,514,000 individuals as compared to 4,410,000 in 2008.

(Source: Central Bank) 

Labour force participation rate

The labour force participation rate was registered at 68.4% in 2009 as compared to 68.1% in 2008.

(Source: Central Bank)

Unemployment Rate

The unemployment rate in the country was recorded at 8.4% in 2009. 379 thousands of individuals were unemployed in the same year.

(Source: Central Bank)

(Source: Central Bank)

The unemployment rate remained constant between the years 2007-2009. The unemployment rates in the first three quarters of 2010 were 9.2%, 7.6% and 7.6% respectively.

Of the total labour force, the number in employment was 4,135,000 in 2009.

(Source: Central Bank)

Minimum wage

In 2007, the minimum real wage in the country was PEN 500.

(Source: ssa.gov)

Level of unionisation

In Peru, temporary and permanent workers have different trade unions. There are also restrictions on the migrant or foreign workers having membership in trade unions.

(Source: ITUC)

Government stability 

The government of the country is a constitutional republic. The President is the Head of State as well as the head of government. The executive powers are with the President. A cabinet consisting of 15 members and headed by the Prime Minister supports the president in matters related to policy-making.

The legislative powers are held by the parliament, known as Congress of the Republic. The parliament system is unicameral and comprises 120 members directly elected for a term of five years. The present composition of the parliament includes 33 women, representing less than 30% of the total members. The main functions of the legislative body include approval, amendment and repealing of laws and resolutions.

Peru has a history of coups, wherein the civilian government was overthrown by military generals. Military governments were established following coups in the years 1948, 1968 and 1975.

The political parties in the country include:

• Alianza Popular Revolucionaria Americana (APRA)
• Popular Christian Party (PCP)
• Peruvian Nationalist Party (PNP)
• Peru Posible (PP)
• Popular Action (AP)
• Union for Peru (UPP)
• Somos Peru (SP)
• National Restoration (RN)
• National Solidarity (SN)

(Source: BBC, IPU, peru.gob)

Regulatory environment

Peru has constitutional republic form of government. The government consist of the executive, legislative and the judiciary branch. The executive and legislative powers are held by the President and the parliament respectively.               

The country’s economic freedom score is 68.6, making the economy 41^st freest in the 2011 Index of Economic Freedom. Peru ranks 5^thout of 29 countries in the South and Central American region.

(Source: heritage.org)

Corruption perception

Peru, with a score of 3.5, is placed at the 78^th position on the Corruption Perceptions Index 2010. This indicates that the level of corruption in the country’s public sector is high.

(Source: transparency.org)

Freedom of Information

The government imposes restrictions on the media in the country.

World Press Freedom Index 2010 ranks Peru at 109^th position with a score of 30. The country slipped from its 2009 position, when it was ranked 85^th.

(Source: rsf.org)

Print media

El Comercio, Gestion, Ojo, El Bocon and La Republica are some of the important newspapers in the country.

(Source: BBC)

Judicial system

The judicial system in Peru is headed by the Supreme Court of justice. Other courts in the country include Superior Courts, Courts of First Instance and the Courts of Peace. The Executive Council is in charge of managing and administration of the judicial system along with the Plenary and the President of the Supreme Court. The Plenary, headed by the President of the Supreme Court and including all justices of the Supreme Court, discusses and examines the judiciary’s progress.

(Source: peru.gob)

Total Population 

The total population in the country for the year 2009 was 29.1 million, an increase of 1.04% as compared to previous year. The population in 2010 is estimated to be 29.5 million.

(Source: National Statistics,Central Bank)

Gender Balance

The total male population in 2009 was registered at 14.6 million, an increase of 1.4% over the previous year. The total female population was 14.5 million, an increase of 1.2% as compared to the last year. The representation of gender in the country is almost equal.

(Source: National Statistics)

(Source: National Statistics)

Birth and Death Rate

The infant mortality rate recorded in the period 2005-2010 was 21.2 deaths per 1,000 live births. The death rate was 5.4 deaths per 1,000 people and the birth rate was 21.3 births per 1,000 people.

(Source: destatis.de)

Average Life Expectancy

The average life expectancy at birth for an individual was 73.7 in 2010. The life expectancy for males and females was registered at 70.5 years and 75.9 years respectively. Life expectancy in the period 2015-2020 for males and females is projected to be 71.3 years and 76.4 years.

(Source: UNDP, destatis.de, National Statistics)

Racial/Ethnic environment

The ethnic group in Peru include European (15%), African, Japanese, Chinese & others (3%) and indigenous group (45%).

(Source: state.gov)

Migration and Urbanisation

The net migration in the period January-November 2010 was registered at 9,411,700 individuals. The urban and rural population in 2009 was 22.3 million and 6.8 million respectively. In future, rural population is estimated to decrease with the increase in urban population.

(Source: National Statistics, NS) 

Poverty and inequality

The national poverty rate in 2009 was 34.8% of the total population. The poverty rate has been on the decline since 2005, when it was recorded at 48.7% of the total population.

(Source: Ministry of Finance)

Human Development Index

The country is ranked 63^rd on the Human Development Index 2010 with a score of 0.72. The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education) and having a decent standard of living (measured by purchasing power parity, PPP, income).

(Source: UNDP)

Education/literacy rate

The illiteracy rate was recorded at 7% in 2010. The illiteracy rate has decreased as compared to 8.4% in 2005 and is further projected to dip to 5.7% by 2015. The illiteracy rate for the year 2010 was registered at 3.5% for males and 10.3% for females. The Illiteracy rate is estimated at 2.9% for the year 2015.

(Source: National Statistics)

(Source: National Statistics)

Literacy rate in the period 2003-2008 was recorded at 91%.

(Source: UNICEF)

Education resources

The education system in the country consists of primary education, secondary education and higher education. It is compulsory for an individual in the country to complete primary education.

(Source: National Statistics)

There were higher numbers of individuals in school from the urban areas as compared to the rural areas. The strength of students increased in schools over the past few years because of increase in number of educational institutions. The rate of attendance of students in schools in Q2 2010 was recorded at 93.4% and 88.4% in the urban and rural areas respectively.

Healthcare resources

The total number of hospitals and healthcare centres in 2009 were 155 and 1,321 respectively.

The total numbers of individual suffering from chronic health problems in the year 2010 were 32.8% and 22.2% in the urban and rural areas respectively. According to the World Health Organisation (WHO), 23.8% of children under age group 5 were suffering from chronic malnutrition.

(Source: National Statistics, Ministry of Health)

Mass public transit

Public transport in the country is primarily dependent on buses, mini buses (micros) and cabs.

Roadways

The total length of roads in 2009 was 137,688 km as compared to 78,246 km in 2008.

(Source: National Statistics)

Ports

There are about 33 ports in and around Peru. Port of Callao and Port of Iquitos are the biggest ports in the country.

(Source: worldport)

Airports

There are 93 airports in the country.

(Source: aircraftcharter)

Telecommunications networks

There were 7,636,400 internet users in the country in the year 2008. The internet penetration rate was 26.2% in 2008.

(Source: internetworldstats)