Geography and population
Peru is located in western South America with coastline along the Pacific Ocean. It has a broad range of natural attractions and spectacular scenery which attract many visitors. It is for example home to the ancient Incan capital of Cuzco, the lost city of Machu Picchu and Lake Titicaca.Around 33.5 million people live in Peru, almost 80 percent of them in urban areas and cities. The Peruvian capital and largest city is Lima, which overlooks the Pacific Ocean and is home to almost a third of Peru's population. The fertility rate, i.e. the average number of children born to one woman, and life expectancy are average and comparable to developed nations.
A positive economic outlook
The economy is also doing well, and the country is attractive to foreign investment. Peru is rich in minerals and mining, and manufacturing and industry have been strong throughout the country's history. Industry has also been an important contributor to GDP, but the services sector is getting stronger and employs more than half of the country's workforce. Since the vast majority of Peruvians live in urban areas, agriculture only plays a small role when it comes to GDP generation and has not been a factor in employment for the past few years. While GDP growth has slowed down recently, it is expected to recover in the future. GDP per capita, however, fell significantly in 2020, but it expected to increase through 2023.Also contributing to the informal economy are earnings from the cocaine industry - Peru is one of the largest producers of cocaine in the world, yet the government has been trying to crack down on production.
Peru's principal trading partners include China and the United States for both imports and exports. Exports have been a mainstay of the Peruvian economy and the country typically enjoys the benefits of a positive trade balance, however from 13 to 2015, the country imported more than it exported, and as a result trade slipped into the red and GDP growth slowed down. This negative trend reverted in 2016, and it is expected to remain positive as the economic outlook remains bright.
