In 2020, Peru was the number 50 economy in the world in terms of GDP, the number 53 in total exports, and the number 59 in total imports.¹ Peru’s economy is classified as an upper middle- class economy by the World Bank. Due to economic reforms that took place during the 2000s, Peru has become one of the fastest growing economies globally. The Peruvian economy is mainly strengthened by its export sector, which finances the money required for imports and also to pay off the external debts of Peru. 

As per the Economic Complexity Index, Peru constitutes the 53th largest export economy in the world. Being the fifth most highly populated country in South America with a population of almost 30 million, Peru has shown tremendous tenacity in terms of controlling inflation as well as unemployment in the last few years.

U.S. - Peru Trade Facts
The trade of goods and services between Peru and the United States came up to 20.1 billion USD in 2017. While the exported goods were a total of 11.3 billion USD, the imported goods were 8.8 billion USD. The goods trade surplus between the U.S. and Peru was 1.8 billion USD in 2018. The services trade surplus between the U.S. and Peru came up to 1.2 billion USD in 2017.

In 2006, Peru and the United States signed the United States-Peru Trade Promotion Agreement (PTPA). While the agreement was ratified in June of 2006, the Protocol of Amendment took place in June 2007. In December 2007, the Agreement Implementation Act became law, and was officially implemented in February 2009.

The GDP of Peru was approximately 225.2 billion USD in 2018. The foreign direct investment (FDI) of U.S. in Peru in terms of stock was 6.4 billion USD in 2017. This direct investment is mainly dominated by mining, manufacturing, and nonbank holding companies.

Top Product Exports From Peru

In macroeconomic terms, Peru’s total exported goods represent 9.4% of its overall Gross Domestic Product for 2020 ($478.3 billion valued in Purchasing Power Parity US dollars). That 9.4% for exports to overall GDP in PPP for 2020 compares to 10.3% for 2019. This seems to suggest a relatively decreasing reliance on products sold on international markets for Peru’s total economic performance albeit based on a short timeframe.

Another key indicator of a country’s economic performance is its unemployment rate. Peru’s average unemployment rate was 6.684% for 2020 down slightly from 6.7% one year earlier, according to the International Monetary Fund.

The biggest export partners of Peru are China (34 %), the United States (11%), Switzerland (7%), South Korea (6%), and India (6%). Canada and Chile are important export partners of Peru as well. Since Peru is a nation rich in resources, it relates to both economic stability as well as social and environmental instability. With the government providing ready access to resources and the multinational operations taking place within Peru, this issue is not likely to go away anytime soon.

The items that are majorly exported from Peru include ores, gems, copper, food industry waste, animal fodder, coffee, crochet clothing/accessories, molybdenum, silver, crude petroleum, natural gas, asparagus, fruits (mangoes, avocados, bananas, citrus fruits), textiles, fishmeal, fabricated metal products, and alloys.

Below is a list of the Top 10 Exports and Opportunities in the Peruvian supply chain economy:²

• Top 10 Exports

The following export product groups represent the highest dollar value in Peruvian global shipments during 2020. Also shown is the percentage share each export category represents in terms of overall exports from Peru.

1. Ores, slag, ash: US$13.2 billion (34.1% of total exports)
2. Gems, precious metals: $6.7 billion (17.2%)
3. Fruits, nuts: $3.8 billion (9.9%)
4. Copper: $2.2 billion (5.8%)
5. Mineral fuels including oil: $1.5 billion (3.8%)
6. Food industry waste, animal fodder: $1.3 billion (3.5%)
7. Fish: $982.2 million (2.5%)
8. Coffee, tea, spices: $849.3 million (2.2%)
9. Knit or crochet clothing, accessories: $691 million (1.8%)
10. Vegetables: $676.8 million (1.7%)

By value, Peru’s top 10 exports accounted for over four-fifths (82.5%) of the overall value of its global shipments. Fruits and nuts represent the fastest grower among the top 10 export categories, up by 16.1% from 2019 to 2020. In second place for improving export sales were coffee, tea and spices via a 12.1% gain led by coffee. Peru’s shipments of copper posted the third-fastest gain in value up by 10.6%. The leading decliner among Peru’s top 10 export categories was mineral fuels including oil thanks to a -53% drop year over year. At the more granular four-digit Harmonized Tariff System code level, Peru’s number one export product were copper ores and concentrates (23.7% of total exports). In second place was gold (16.6%), refined copper (4.6%), inedible meat flour (3%), iron ores and concentrates (2.8%) and miscellaneous fresh fruits (also 2.8%).

• Top 10 Opportunities

Below are exports from Peru that result in negative net exports or product trade balance deficits. These negative net exports reveal product categories where foreign spending on home country Peru’s goods trail Peruvian importer spending on foreign products.

1. Machinery including computers: -US$4.9 billion (Down by -7% since 2019)
2. Electrical machinery, equipment: -$3.4 billion (Down by -15%)
3. Vehicles: -$2.7 billion (Down by -29.6%)
4. Mineral fuels including oil: -$1.8 billion (Down by -36.7%)
5. Cereals: -$1.4 billion (Up by 3.6%)
6. Plastics, plastic articles: -$1.38 billion (Down by -11.1%)
7. Iron, steel: -$1.26 billion (Down by -6.7%)
8. Pharmaceuticals: -$1 billion (Up by 13%)
9. Optical, technical, medical apparatus: -$863.9 million (Up by 6.5%)
10. Articles of iron or steel: -$847.7 million (Down by -16.9%)

Peru has highly negative net exports and therefore deep international trade deficits for machinery notably computers and heavy machinery including bulldozers and excavators. These cashflow deficiencies clearly indicate Peru’s competitive disadvantages in the international market for machinery-related products, but also represent key opportunities for Peru to improve its position in the global economy through focused innovations.

Conclusion

Peru has witnessed enormous economic growth lately, which has been due to economic stability, smart trade, and an increase in consumption and investment. Some of the biggest industries in Peru are that of fish processing, cement, rubber, chemicals, petroleum extraction and refining, fishing, soft drinks, furniture, textiles, and mining and refining, to name a few.

Peru’s capital, Lima, which is also its largest city, is the financial and industrial center of the country. It’s also one of the most vital financial centers in Latin America. The city accounts for over two-thirds of Peru’s industrial production. It serves as a regional destination for the cargo industry, and also has the biggest export industry in the continent as a whole.

The GDP of Peru is dominated mainly by the service industry, followed by the manufacturing and extractive industries. The United States happens to be the biggest and most important trading partner of Peru, and a free-trade agreement was agreed upon between the two countries in the year 2006.

At Exporta Wholesale, we aim to facilitate the increasing transition of US buyers near shoring their manufacturing operations to Latin America. Exporta provides U.S. buyers access to hundreds of manufacturers in Mexico, Colombia, and Peru, all of whom are pre-vetted to ensure high quality standards for our carrier partners. For more information on Exporta please visit our website.

About Exporta Technologies

Exporta Wholesale is the largest marketplace connecting suppliers in Latin America with buyers in North America. Today, we have a network of over 5,000 Latin American suppliers serving a variety of consumer goods and product categories in the United States. 

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References

1. https://oec.world/en/profile/country/per
2. https://www.worldstopexports.com/perus-top-10-exports/