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- Peru Aims to Achieve Strong Economical Status – Aided by Exports
Peru Aims to Achieve Strong Economical Status – Aided by Exports
- By Oil and Gas Author
- Published 08/30/2006
- Crude Oil Petroleum , Natural Gas Petroleum , Exploration and Discoveries , Liquefied Natural Gas LNG , Petroleum Pipeline
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View all articles by Oil and Gas AuthorPeru has achieved a strong economic performance in recent years. The countrys gross domestic product (GDP) grew at 6.7 percent in 2005, an increase from the 4.8 percent growth rate of 2004. Analysts predict that the economy will further grow at a 5.1 percent rate during 2006. Despite its high level of economic growth, Peru still suffers from several pressing economic problems. The countrys official unemployment rate as of January 2006 was above 10 percent, and many analysts believe that the actual unemployment rate could be much higher. There is also widespread poverty in Peru, especially amongst the countrys rural population. In January 2006, the International Monetary Fund (IMF) completed its third review of Peru under the Stand-By Arrangement, which makes Peru eligible to receive around $300 million in aid from the IMF. In line with the arrangement, Peru has maintained strong GDP growth and has kept the inflation rate (1.6 percent in 2005) within the countrys official target range of 1.5 – 3.5 percent. In addition, the IMF noted Perus positive trade surplus and comfortable levels of foreign currency. Throughout 2005, the Peruvian economy benefited from high prices for its mineral exports and a good performance from its export-manufacturing and commerce sectors. Peru is a member of the Andean Community, set up in March 1996 by leaders of Bolivia, Colombia, Ecuador, Peru, and Venezuela. At that time, the five national leaders expressed their intent to move towards a single market along the lines of the European Union, although significant policy differences will need further consideration. The Community is working towards integrating its member countries energy sectors, particularly in the electricity and Natural Gas areas, through network interconnections and harmonized regulatory frameworks. In November 1997, Peru joined the Asia Pacific Economic Cooperation (APEC) forum. In December 2005, Peru signed a Trade Promotion Agreement with the United States to help bolster economic growth in both countries.
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Peru Aims to Achieve Strong Economical Status – Aided by Exports
