All About Peru

Topics: Peru

Peru is located in the western and central part of South America. Its territory, covering an area of 496,224 sq. miles, borders Ecuador and Colombia to the north, Brazil, and Bolivia to the east, and Chile to the south. The capital of Peru is Lima. It has a population of 10 million people.

Explain the economic system of your country. What type is it? Peru has a mixed economy because they have a president, a Congress, and free trade with imports/exports. The president holds the executive power and serves a five-year term.

Under their constitution, the presidents cannot serve two or more terms consecutively. The Supreme Court is the country’s highest judicial authority. They also have a prime minister, César Villanueva, who does not exercise executive power. For that power rests with the president. Rather, he has been holding the title of prime minister since April 2018.

What role does the government play in your country’s economy? The government plays a major role in Peru’s economy.

Peru is one of the world’s fastest-growing economies, with a 2018 GDP growth rate of 3.45%. The main factor shown in the growth of Peru’s GDP and the economy is Peru’s net exports. They made a positive contribution to growth. The exports of goods and services are rising by 12.9%. Another example would be Peru’s natural resources, which were helpful to fuel the strong economic growth. However, because Peru relies heavily on the export of commodities, its growth is affected by global price fluctuations.

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Recent governments have focused on securing free-trade agreements with a variety of countries in the Americas.

Describe the consumers who live in the country. Peruvian consumer behavior has evolved a lot over the last few years, especially thanks to the use of the internet. Peruvians are rational consumers, therefore quality is the main focal point when making a purchase decision. Brand awareness is very important for durable goods. Everyday product availability and prices are the most important factors. Peruvian consumers actively seek promotions and discounts, and this is one of the reasons why e-commerce is growing at such a fast pace. Who are they and how much money do they have? They are mostly adults who make around 850 S/ (Nuevos Soles) or approximately $261 in U.S. dollars or more per month. How do they live? Peruvians mostly work during daylight hours; people rise early and go to bed early. What do they buy? Consumers are also spending more and more on leisure activities. Do they have a lot of products and services to choose from or are their options limited? I would say that Peru has a lot of products to choose from. They import and export so many goods. They do not have a shortage of supplies at all. How do the consumers affect the country’s economy? Consumers affect Peru’s economy because everything they buy affects how well the market will do. Fanyor example, if a lot of people like a certain product, it is unlikely for them to stop making it. I can find Peruvian foods in foreign grocery stores in the area. When I went to Milwaukee and found several items in one of the stores that were imported from Peru. This is just one example of how imports from Peru are sold daily.

What kinds of citizen rights do the people have? Citizen rights are very similar to those in the United States. They have a presidential system, a unitary state, and a constitutional republic. Can they vote? All people between the ages of 18 through 70 are required to vote. If they fail to achieve this, they will be fined. Do they pay taxes? All residents are taxed on any income that they earn, while non-residents are taxed only on a Peruvian earned income. How does this affect the country’s economy? The government gets money from the taxes. The government benefits from these citizens (residents and non-residents) and the taxes they pay.

Describe the average worker. The average worker has to be above the age of 14. 25.8% of Peruvians work in the agricultural industry, 17.4% work in the industrial facility, and 56.8% work in services (2011). Peru’s labor force is 17.03 million (2017 est.). How productive are they (GDP per capita)? Peru’s GDP per capita is 6,571.93 USD. Their rank is 119th in the world. How educated are they? Education in Peru through primary and secondary school is mostly free for children from ages 7 to 16. The schooling begins with pre-school education before children enter primary school for 6 grades. About 30% of children in Peru attend private schools that usually charge between 100 and 200 USD a month. What kinds of products and services do they produce? Since the US-Peru Trade Promotion Agreement entered into force in February 2009, total trade between Peru and the US has doubled. Their mining output increased significantly between and since 2016-2017, which helped Peru attain one of the highest GDP growth rates in Latin America. As a result, Peru should maintain strong growth through the next couple of years. How do these variables affect the country’s economy? Many people work in profitable jobs that benefit the economy and government. Also, trade and exports have a huge impact on the income of the economy.

What kinds of natural resources does your country have? Peru holds more than 70% of the Earth’s species within its borders. Its flora and fauna are considered among the most varied on the planet. Peru has many natural resources including copper, silver, gold, lead, zinc, tin, iron ore, oil, and natural gas. How do they affect the country’s economy? Many businesses and industries depend on these resources to operate. Peru has a large economic base with lots of industries it can count on for improvement. Because of Peru’s diverse plant, animal, and natural resources, they can trade and sell them to make money. As a result of this, their economy increases.

Finally, explain how your country’s economy compares to the economy of the United States. Peru has a 62.19 billion dollar (ranked 46th in the world) budget revenue-wise. The United States has $2.45 trillion (ranked 1st) in budget revenue. In exports, Peru’s is 45.64 billion dollars and the United States’s is 1.56 trillion dollars, which is 34 times more than Peru. In government / public debt/share of GDP, Peru is 18.3 CIA. The United States is 72.5 CIA. Lastly, Peru’s GDP is $214.2 billion, while the United States’s is $19.39 trillion.

Any other brief interesting facts or information about your country that you would like to include (tourist spots, holidays, historical events – in brief). Peru has many tourist spots. One of these is one of the Seven Modern Wonders of the World, Machu Picchu. Machu Picchu is an Incan citadel set high in the Andes Mountains in Peru. It was built in the 15th century and later abandoned. It is renowned for its sophisticated dry-stone walls that fuse huge blocks without the use of mortar, which is a building mixture. Another interesting fact is there are over 2,000 different types of potatoes grown in Peru. The Amazon River, the longest river in the world, starts in Peru. Two-thirds of Peru is covered in The Amazon Forest. Lastly, there are 10 million alpacas in the world and three-quarters of them live in Peru.

Works Cited:

  1. CultureGrams. “Peruvian Economy and Daily Life”. http://online.culturegrams.com/
  2. Tunnel, Tony. “Minimum Wage Information in Peru”. 14 January 2019. https://www.tripsavvy.com/minimum-wage-in-peru-1619633
  3. Grier, Laura. “50 Fun Facts You Probably Never Knew About Peru”. 13 December 2016. https://www.huffingtonpost.com/entry/50-fun-facts-you-probably-never-knew-about-peru_us_58507beee4b0a464fad3e4b5
  4. “Machu Picchu”. Wikipedia. https://en.wikipedia.org/wiki/Machu_Picchu
  5. ‘Peru: Economy.’ CultureGrams Online Edition, ProQuest, 2019, http://online.culturegrams.com/world/world_country_sections.php?cid=125&cn=Peru&sname=Economy&snid=19
  6. “Peru: Market Consumer”. https://import-export.societegenerale.fr/en/country/peru/market-consumer
  7. “Peru- Taxation” http://www.expatfocus.com/expatriate-peru-taxation
  8. “Peru vs United States Economy Stats Compared”. https://www.nationmaster.com/country-info/compare/Peru/United-States/Economy
  9. “The World Factbook: Peru”. 01 February 2018. https://www.cia.gov/library/publications/the-world-factbook/geos/pe.html

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All About Peru. (2022, May 12). Retrieved from https://paperap.com/all-about-peru/

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