<hdr>The World Factbook 1994: Peru<nl>Economy</hdr><body>
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<item><hi format=bold>Overview:</hi> The Peruvian economy is becoming increasingly market oriented, with major privatizations scheduled for 1994 in the mining and telecommunications industries. In the 1980s the economy suffered from hyperinflation, declining per capita output, and mounting external debt. Peru was shut off from IMF and World Bank support in the mid-1980s because of its huge debt arrears. An austerity program implemented shortly after the FUJIMORI government took office in July 1990 contributed to a third consecutive yearly contraction of economic activity, but the slide halted late that year, and output rose 2.4% in 1991. After a burst of inflation as the austerity program eliminated government price subsidies, monthly price increases eased to the single-digit level and by December 1991 dropped to the lowest increase since mid-1987. Lima obtained a financial rescue package from multilateral lenders in September 1991, although it faced $14 billion in arrears on its external debt. By working with the IMF and World Bank on new financial conditions and arrangements, the government succeeded in ending its arrears by March 1993. In 1992, GDP fell by 2.8%, in part because a warmer-than-usual El Nino current resulted in a 30% drop in the fish catch. In 1993 the economy rebounded as strong foreign investment helped push growth to 6%.
<item><hi format=bold>National product:</hi> GDP—purchasing power equivalent—$70 billion (1993 est.)
<item><hi format=bold>National product real growth rate:</hi> 6% (1993 est.)
<item><hi format=bold>National product per capita:</hi> $3,000 (1993 est.)
<item>• <hi format=ital>consumption per capita:</hi> 760 kWh (1992)
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<item><hi format=bold>Industries:</hi> mining of metals, petroleum, fishing, textiles, clothing, food processing, cement, auto assembly, steel, shipbuilding, metal fabrication
<item><hi format=bold>Agriculture:</hi> accounts for 13% of GDP, about 35% of labor force; commercial crops—coffee, cotton, sugarcane; other crops—rice, wheat, potatoes, plantains, coca; animal products—poultry, red meats, dairy, wool; not self-sufficient in grain or vegetable oil; fish catch of 6.9 million metric tons (1990)
<item><hi format=bold>Illicit drugs:</hi> world's largest coca leaf producer with about 108,800 hectares under cultivation in 1993; source of supply for most of the world's coca paste and cocaine base; at least 85% of coca cultivation is for illicit production; most of cocaine base is shipped to Colombian drug dealers for processing into cocaine for the international drug market
<item><hi format=bold>Economic aid:</hi>
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<item>• <hi format=ital>recipient:</hi> US commitments, including Ex-Im (FY70-89), $1.7 billion; Western (non-US) countries, ODA and OOF bilateral commitments (1970-89), $4.3 billion; Communist countries (1970-89), $577 million
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<item><hi format=bold>Currency:</hi> 1 nuevo sol (S/.)=100 centimos
<item><hi format=bold>Exchange rates:</hi> nuevo sol (S/.) per US$1—2.180 (January 1994), 1.988 (1993), 1.245 (1992), 0.772 (1991), 0.187 (1990), 0.0027 (1989)
<item><hi format=bold>Fiscal year:</hi> calendar year
