Balance of Trade

0.5 10000

0.4 8000
0.3
6000
0.2
4000
0.1
2000
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 0
-0.1

-0.2 -2000

-0.3 -4000

exports growth rate imports growth rate BOT

Balance of trade is negative in Peru, which means that the exports are more as compared to the
imports. From the graph, it can be interpreted that between 2014-15 there was trade surplus in
the economy but prior to 2015 there is mostly trade deficit which means that Peru are producing
in good number within the country because of its mining and agricultural sector.

Top 5 Exporter Commodities

EXPORTS IN $ BILLION

Copper Ore
7%
10% Gold
36%
16% Refined Petroleum
Refined Copper
31% Animal Meal and Pellets

Exports from Peru amounted to US $ 45,275.03 Million during 2018 up by approx. 67.2 %
since 2009 when the world was facing International Finance crisis. It is the 51st largest export
economy in the world. It mainly focusses on the Natural resources(Copper ore, Gold, zinc,
etc.), refined petroleum, animal meals to fuel its economy.
Top 5 Exporter Country-

EXPORTERS
CHINA

7% USA
8%
30% SWITZERLAND
9%
CANADA
11%
BRAZIL
11% 24% JAPAN
CHILE

China and U.S.A are the largest exporter for Peru as they mostly imports copper ore, gold,
precious metals and refined petroleum from Peru, having a 54% share of the total exports of
Peru.

Top 5 Importer Commodities

IMPORTS IN $ BILLION

10% Refined Petroleum

12% 31% Crude Petroleum
Cars
18% Broadcasting Equipment
29% Computers

Exports from Peru amounted to US $ 38,703.861 Million during 2018. It is the 55th largest
import economy in the world. It mainly focusses on Refined petroleum, Cars, Broadcasting
Equipment to fuel its economy.
Top 5 Importer Country

IMPORTERS

USA

6%6% CHINA
6% 32% BRAZIL
9% MEXICO
10% VENEZUELA

31% ECUADOR
COLOMBIA

U.S.A is the largest importer for Peru followed by China. As, Peru imports around 80% of
Refined Petroleum from USA, approx. 84% of Broadcasting Equipment from China and
approx. 30% of cars from South Korea.

Exchange rate

Exchange rate
4.000
3.500
3.000
2.500
2.000
1.500
1.000
0.500
0.000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

SOL per(US Dollar) (SOL per Brazilian Real) (SOL PERChinese Yuan)

Most of the trade are done in US Dollars followed by Chinese Yuan and Brazilian Real. This
graph shows variation of exchange rates from 2007 to 2017. As it can be analysed from the
 graph that Peruvian SOL has depreciated against US dollars and Chinese Yuan and appreciated
against Brazilian Real.

External Indicators
Since 2008, Peru has been recording trade deficits due to greater imports. The country exports
mainly Natural resources(Copper ore, Gold, zinc, etc.), refined petroleum, animal meals while
it imports Broadcasting Equipment’s, Cars and Refined Petroleum. Main trading partners are:
China (30 percent of total exports and 31 percent of total imports) and the United States (24
percent of exports and 32 percent of imports). Others include: Brazil, Mexico and Switzerland.

1,000 4.0

500
2.0
0
I II IIIIV I II IIIIV I II IIIIV I II IIIIV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV
-500 0.0

Percentage
USD Billion

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
-1,000
- 2.0
-1,500

-2,000 - 4.0

-2,500
- 6.0
-3,000

-3,500 - 8.0

CURRENT ACCOUNT in(Millions of US$) CURRENT ACCOUNT as a percentqge of GDP

Peru’s current account balance as a percentage of GDP has been falling, since 2011.Peru’s
export in 2009, declined from 31018.47 million to 27070.51 million which is approximately
about 3948 million USD. This somehow does not affect the economy much as Peruvian
government had imposed strategic economic plan in order to minimize and escape from the
global recession in 2008. Peruvian government decreased the borrowing rates in order to
increase the money supply and issued bonds at discounts for foreign direct investment.
The global crisis in 2008 highly affected Peru as the US reduced their export of Refined
Petroleum. Due to low supply of Refined Petroleum, the prices rose up. Due to this, imports in
value for Peru went up because of hiking prices. Furthermore, exports of Peru declined to a
extent in the last quarter of 2008, making the condition worse.
 Capital Account
14000
12000
10000
8000
6000
4000
2000
0
-2000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

-4000
-6000

FDI (millions of US $) FPI (millions of US $)

The Peruvian government’s attitude towards FDI and FPI is positive. Following the 2008-09
global financial crisis, FDI has continued to increase steadily, because of Peru’s Mining and
Agricultural sector. We observe that in 2012 the foreign direct investment was maximum and
around 2013 it started declining subsequently because Peru’s political crisis in 2011 and
Peruvian economy crisis in 2013 . The foreign portfolio investment of Peru has been declining
since the first quarter of 2007 because of Low demand of Peruvian SOL and weaker against
other currencies.