Peru - Current economic position and prospects

I - - I RESTRICTED |RETURN TO Report No. WH- 143a I ruw I i 1=0 L,.:ixI I W~ lY'N | ONE WEEK nff This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION CURRENT ECONOMIC POSITION AND PROSPECTS OF PERU February 25, 1965 Western Hemisphere DeDartment  GUTTRRE.NGVY EQTjTVALTNTSJ' 'I T?e~ + 1 US a = 26.8 Soles 1 Sol (S/. = 3.7 US cents 1 million Soles = US $37, 300  TABLE CF CONTENTS Page No. BASIC, DATA ...................................... i SUMRARY AND CONCLUSIONS .... iv I - INTRODUCTION . . 1 II - PRODUCTION AND GROWTH. .. 1 Production . .1 Agriculture ........................... 2 Industry 4. 4 Power and Detroleum 7 . .7 lYEining . .8 III - DOMESTIC INVESTMENT7, SAVINGS, AND FINANCE 9 Budget Performrance . ............... 11 Money and Credit . .............. 3 Prices and Tlages . . 15 IV - EXTERNJAL ACCOUTNTS . .16 Exports. 16 TImports .... ..................... .......... . .. 19 Balance of Payments .................. . 19 V - CREDITWORTHITESS ............ ............. 21 Conclusions ....... .................... 22 STATISI'TCAL APPEWIDIX. 2  DAi)01 D iJ} i K Area: 482,300 square miles Population: 1961 (official census) 10.4 million 1964 (estimated) 11.6 million Annual rate of' increase 194~0-61 2.3% Annual rate of increase 1960-61 2.9% Gross Domestic Product, 1964: 71 billion Soles (in terms of 1960 soles) / originating in agriculture 20% % originating in industry 20% % originating in mining 8% % originating in fishing 2% %. originating in commerce 18,' Rate of increase in 1964 5.4 Average annual rate of increase 1960-64 6.4% Increase in GDP per capita: (in terms of 1960 soles) Increase in 1964 2h4' Average rate of annual increase 1960-64 3.4% Gross National Product, 196L: In current prices 85 billion soles In 1960 prices 66 billion soles Per capita $211 Gross Domestic Investment as % of GE?P 1962 1963 1964 in 1960 Soles: 27/. 23% 24S Private (19%) (18) (18%) Public ([4%) (5%) (6%) Cost of Living: Average annual increase 1951-60 6% Arerage annual increase 196-6 7% Average increase July 1963-  - ii - Balance of Payments (in US$ millions): 1960 1963 1964 Exports 445 553 672 Imports -319 -492 -523 Balance of Trade +126 +61 -+149 Services +10) -131 -142 Bal.ance on Current Account +22 -70 +7 Total Merchandise Exports (in US$ millions): 1963 1964 541 642 In % of t1he t.ota 1. Major Agricultural 35 30 Fish Products 23 27 iaiLor MLineral 37 33 ('+ her Exports 5 5 Exports as % of GNP 26% 27% External Fi;nancing as o of Public InriveSIU..enU XLL L7W4. ki/ 'IJ