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Peru: Selected Issues

Author(s):
International Monetary Fund
Published Date:
March 2001
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IV. The Design and Challenge of Monetary Policy in Peru65

78. In the last decade, Peru has adopted significant financial reform. It privatized public banks, adopted Basle-consistent prudential standards, enacted a new central banking law, embraced universal banking, fostered a competitive financial system, strengthened banking supervision, and introduced special legislation for the stock market and pension system. These sweeping changes have fundamentally altered the conduct of monetary policy since the early 1990s. This chapter discusses monetary policy in this new environment.

79. The first section outlines the design of monetary policy in the post-reform period. Section B discusses its implementation. Section C assesses its effectiveness against the central bank’s mandate of preserving monetary stability. It argues that the central bank has been effective, but that monetary policy could be more transparent, and views the volatility of the sol-denominated interbank rate as an inevitable consequence resulting from the central bank’s decision to conduct monetary policy by targeting base money. The last section concludes that a formal inflation targeting policy framework could help overcome these concerns.

A. The Design of Monetary Policy

Objective of monetary policy

80. The sole objective of the Central Reserve Bank of Peru (BCRP) established under the Central Reserve Bank Act of 1993 is to preserve monetary stability. The central bank interprets this mandate as a call to “defend the acquisitive power of the currency”66, translating it into the need to continue reducing inflation in Peru to developed countries’ level in the medium term. The act allows the central bank to set the inflation target and choose the instruments to achieve it, and prohibits it from earlier practices of financing the public sector, providing guarantees, directing credit to selected sectors, and establishing a multiple exchange rate regime.67 In addition, the act does not place on monetary policy the objectives of promoting high growth of output and employment, another departure from the previous law. To ensure consistency in economic policies, however, the central bank coordinates closely with the Ministry of Finance to formulate the annual monetary program.

Control of inflation

81. The central bank’s record on inflation has been reasonably strong since the act came into force. At the outset of each year, the central bank announces a target range for end-year inflation. Annual inflation has fallen within the targeted range twice, was lower than expected four times, and slightly overshot the targeted range once, see Figure 1, The target range for 2001 is set at 2.5–3.5 percent.

Figure 1.Peru: Target vs. Measured CPI, 1994 - 2000

Source: Central Reserve Bank of Peru.

82. Given its control over base money, the central bank considers that a narrow concept of money is the appropriate immediate target for conducting monetary policy. Thus, the central bank uses a monetary model that is based on domestic currency aggregate only, although more than three-quarters of total bank deposits are held in dollars and about four-fifths of total bank credit are denominated in U.S. dollars. There are two justifications for this. First, central bank research shows that the demand for foreign currency (U.S. dollars) has been motivated largely for reasons of portfolio management while the demand for domestic currency was used mainly for transactions.68 Second, research also shows that since 1994 the demand for a narrow concept of money (i.e., excluding foreign currency aggregates) has been more stable than a broader concept of money, which can be used to bear on the rate of inflation.69 Thus, in the absence of currency substitution and with a reasonably stable demand for narrow money, targeting the quantity of narrow money would provide a basis for attaining the inflation target.

B. Monetary Policy Implementation

Monetary policy formulation and instruments

83. The Board of the central bank approves a monetary program that includes an end-period inflation target range and an average rate of growth for base money. The central bank establishes monthly paths for inflation target and base money, but does not publish them, because these paths need to be adjusted (in reflection of the impact on prices stemming from the strength of internal demand, growth of bank credit, changes in the fiscal position of the public sector, adjustments of inflation expectations, and the depreciation of the currency).70 Like many central banks, the BCRP also does not publish an explicit model linking the inflation target range and the average rate of growth for base money. In the monetary program for 2001, however, the BCRP has provided a diagrammatic exposition of the monetary transmission mechanism for inflation and base money.

84. The BCRP uses three types of instruments for monetary policy and liquidity management: (a) market based instruments such as the auctions and repurchase operations of BCRPCDs (deposit certificates), the purchase and sale of foreign exchange, overnight swaps in foreign currency, and the auction of funds of Banco de la Natión (the government’s fiscal agent) deposited at the central bank, (b) BCRP-based facilities such as the rediscount window and overnight deposits in soles and dollars, and (c) regulatory instruments such as reserve requirements.71

Market based instruments

85. Central bank deposit certificates. The BCRP is increasingly active in using BCRPCD auctions to regulate excess liquidity, even though this is not carried out with regular periodicity. Bank bids are accepted on a best price offer basis (from highest to lowest price until the desired auction amount is satisfied). During tax payment periods (usually lasting about 2 weeks in the middle of the month), the central bank conducts repurchase operations to inject liquidity into the system. Repo bids are also accepted based on best price offers (from lowest to highest price until the desired repurchase amount is satisfied).

86. Foreign exchange intervention and swap operations. Prior to 2000, through the unsterilized purchase (sale) of foreign exchange in the interbank market, the BCRP injected (withdrew) domestic currency liquidity in the banking system. However, beginning in 2000, the monetary authorities no longer intervene in the foreign exchange market for the objective of injecting or withdrawing liquidity.72 The BCRP also injects temporary liquidity by swapping soles for foreign exchange from banks. These swap operations are normally for 24 hours. The cost of the swap to banks is either the commission established by the BCRP or the depreciation of the sol during the swap, whichever is higher, so that exchange rate risk is borne entirely by banks.

87. Auction of Banco de la Nación funds. The auctioning of funds from Banco de la Nación deposited at the BCRP as a liquidity management instrument is rare. Nevertheless, when the choice of instruments for the central bank is limited, as for example when the stock of outstanding BCRPCDs was low during the liquidity crunch in December 1998, the central bank injected liquidity by auctioning these deposits.

BCRP-based facilities

88. The central bank can extend domestic or foreign currency credit to banks with temporary liquidity problems. The BCRP credit rate in soles is set deliberately high, and never lower than the average interbank market rate, so that banks needing sol-denominated liquidity are encouraged to approach the interbank market first and access this credit facility as a last resort. For February 2001, the Board of the central bank set the sol-credit rate at 12.5 percent or the average of the top decil of interbank interest rates, whichever is higher. In the case of the U.S. dollar credit facility, which is infrequently used, a flat rate is set. In February, this rate was 8.5 percent. The Banking Law limits bank access to this “rediscount” window to no more than 90 days over a period of 180 days before triggering mandatory surveillance by the banking supervisor.

89. The central bank created a facility in 1998 for dollar funds in an overnight account that remunerates deposits at the average interest rate which it receives from investing such funds overseas (approximately LIBOR). The central bank extended the overnight facility to soles funds in September 2000. In February 2001, the interest rate for this facility was 4.5 percent.

Regulatory instruments

90. All deposits in domestic currency are subject to a 6 percent reserve requirement (reduced from 7 percent in September 2000), which are not remunerated. Deposits in foreign currency, remunerated at LIBOR minus a small fraction of one percent, are subject to a marginal reserve requirement of 20 percent. An average reserve requirement of 34 percent (following a three percentage point reduction in September 2000) is levied on the average stock of dollar deposits as of end-October 2000.

91. For a highly dollarized economy such as Peru, the reserve requirement on foreign currency has acted to reduce the upward pressure on the sol at times of strong capital inflow and moderated the ensuing monetary growth in foreign currency. It also provides the central bank with substantial reserves that cushion the financial system from the risk of capital outflow.73

92. While the BCRP does not generally rely on the reserve requirement on sol-denominated or dollar-denominated deposits to inject or withdraw liquidity, there have been exceptional cases where this has been done. For example, in late 1998, the BCRP reduced the average reserve ratio on dollar deposits on three occasions (reducing required reserves by US$420 million in total) to help offset the cutback in foreign lines of credit (of a similar amount) at the time of the Russian and Brazilian crises.

Daily monetary management

93. The central bank’s daily monetary management is based on a daily estimate of banking system liquidity. This estimate is based on a set of indicators such as banks’ cash balances, bank reserves (required reserves as well as those freely available) in domestic currency held at the central bank, the level of interbank interest rates, and the net check-clearing position of banks.74 The central bank then attempts to influence the level of bank reserves through open market operations and foreign currency swaps, while accounting for other factors such as the expected level of tax payments and public sector expenditures during the day, which are outside its control.

94. The BCRP makes a daily projection of bank reserves that is consistent with its monthly base money target and compares this with the estimated daily bank reserves. The latter is obtained by adding the observed bank reserves of the previous day and the net change in bank reserves estimated for the day (before open market operations). The decision to inject or withdraw liquidity during the day is made after comparing the projected bank reserves and the estimated bank reserves. To get an indication of the daily change in bank reserves (before open market operations), the BCRP looks at bank transactions that have a major impact on their reserve positions. Outflows from banks that reduce their reserve position would include transfers (in soles) to Banco de la Nación, the expiration of sol-denominated loans from the central bank rediscount window, the unwinding of repo transactions in BCRPCDs, reverse swaps in foreign exchange, and repayments of deposits of the Banco de la Nación auctioned by the central bank. Inflows to banks that increase their reserve positions would include the expiration of BCRPCDs, transfers of cash in bank vaults to reserve accounts in the central bank, net purchases of foreign exchange by the BCRP, auctions of Banco de la Nación funds held at the central bank, repo transactions in BCRPCDs, access to the central bank’s rediscount window, and swaps in foreign currency.

95. Interest rates and the exchange rate are market determined. As monetary management is geared at controlling a monetary aggregate, the central bank does not target any particular interest rate, even though it has from time to time expressed concerns about its level and volatility. The central bank lets market forces determine the level of the exchange rate, and does not have, as an objective, a particular target exchange-rate level. However, it has managed liquidity as needed, to smooth out sudden and sharp fluctuations in the exchange rate when the authorities considered that pressures in the exchange market were not reflecting underlying fundamentals; at times, this resulted in long periods of significant stability in the exchange rate.

C. Effectiveness of Monetary Policy

96. The conduct of monetary policy has been reasonably effective, but lacked transparency and has had an unintended impact on interbank interest rate volatility. Together with fiscal consolidation and wide-ranging structural reforms (including privatization, liberalization of the exchange rate and interest rates, and the elimination of various distortionary measures that stifled financial intermediation), prudent monetary policy management since the early 1990s has led to a sustained reduction in inflation, a significant accumulation of net international reserves, and an increase in financial intermediation. Real interest rates which were negative in the late 1980s and 1990 turned positive, and extremely high nominal sol-denominated interest rates of the early 1990s fell as inflation declined (see Table 1).

Table 1.Peru: Selected Financial Indicators, 1990–2000
Inflation (end-period)NIR (U.S. dollar millions)Credit (%GDP)Broad Money (%GDP)Soles Lending Rate
19907,650.053110.117.2481.8
1991139.21,3047.511.6230.7
199256.72,0019.313.5135.3
199339.52,74110.314.672.3
199415.45,71812.516.139.0
199510.26,64114.917.033.5
199611.88,54019.621.030.6
19976.510,16922.221.330.4
19986.09,18325.422.237.1
19993.78,40425.222.832.0
20003.78,18025.524.226.5
Source: BCRP.
Source: BCRP.

Monetary policy transparency

97. Recently the central bank took steps to improve transparency and accountability of monetary policy. Monetary policy procedures and transparency in goals, instruments, and decisions in the past fell short of the best practices recommended by the Code of Good Practices on Transparency in Monetary and Financial Polices. In previous years, apart from the publication of an annual monetary program, the central bank did not systematically report and account for its policy decisions.75 However, in early 2001, it has taken steps to address this deficiency.

a. In January, details of the monetary program for the year were published that make the formulation of monetary policy more transparent. In addition, the central bank will also publish in May and September an update of the annual monetary program.

b. Beginning in February, monthly information is being provided to guide the market on monetary operations for the month. On the first Friday of every month, the central bank will publish a report76 providing: (a) the daily average target range on the reserve balance banks held at the central bank and (b) interest rates that the central bank will charge for monetary regulation credits and the interest rate it will pay on overnight deposits held by banks at the central bank.

98. While this increase in transparency is welcomed, more could be done. For example, the central bank could announce the base money target for the month. It could explain in the monthly report how the evolution of financial indicators, such as interest rates, credit growth, and the exchange rate, affected its operations. In updating the monetary program in May and September, the central bank could comment on the outcome of the inflation and base money paths and explain any modifications to monetary policy, if any, as conditions change. These steps will further help the market anchor inflation expectations and enhance market confidence that the BCRP is committed to keeping inflation low.

99. Limited publicly available information in the past impeded a rigorous scrutiny and evaluation of monetary policy. In the past six years, even though yearly inflation has been broadly in line with the target, the (ex ante) intermediate targets for average base money growth have largely been out of line with the monetary growth outturns that, supposedly, ought to have been consistent with the inflation target. While the central bank was clearly more concerned with meeting the inflation target than the base money intermediate target, explaining why the latter had to be readjusted would have improved transparency.

100. The relationship linking the average growth rate for base money and the end-period inflation target (or the relationship between the daily operational target, bank reserves, and inflation target) has not been made public. Independent verification of whether the average base money growth rate target had been met was not possible because this target was not announced prior to 2000. Ex-post comparisons of the upublished targets for 1994-99 reveal sizeable deviations from their outturns; albeit, with a decreasing margin over time (see Table 2).

Table 2.Peru: Unpublished Average Annual Base Money Growth Target vs. Outturn
Target Rate (In percent)Actual Rate (In percent)Deviation
199419.039.020.0
199530.041.011.0
199614.015.31.3
19979.013.74.7
199815.012.5-2.5
19996.06.70.7
20008.0–10.0*6.02.0-4.0
Source: BCRP.

In 2000, the BCRP announced, for the first time, the average base money growth rate.

Source: BCRP.

In 2000, the BCRP announced, for the first time, the average base money growth rate.

101. In the absence of information on the target for average growth of base money, the public may have been tempted in the past to evaluate monetary policy by comparing the publicly available end-period base money projection and its outcome; however, actual base money growth (end-of-period basis) also deviated significantly from the projection (see Table 3).

Table 3.Peru: Publicly Available End-Period Annual Base Money Growth Target vs. Outturn
Target Rate (In percent)Actual Rate (In percent)Deviation
199420.048.228.2
199515.036.921.9
199610.09.2-0.8
19975.019.214.2
19989.75.5-4.2
19995.917.011.1
20000.077-4.0-4.0
Source: BCRP.
Source: BCRP.

Interbank interest rate volatility

102. The second concern regarding the conduct of monetary policy relates to the volatility of sol-denominated interbank interest rates (both over the course of the month and on a daily basis). Sol-denominated interbank rates exhibit a clear intramonthly pattern. The fluctuation is closely linked to the monthly tax payment schedule. In the two weeks when the main taxes are paid (starting around the 9th working day of each month), the fall in sol-denominated bank liquidity (as proxied by a decline in bank reserves at the central bank) is accompanied by an increase in the average interbank rate in soles. The cycle is reversed after taxes are paid (around the 18th working day of the month). Figure 2 shows that from October 1997–June 2000, average bank reserves increased in the first part of the month leading up to the tax payment period, followed by a decline in the days when taxes were paid, and then rose slightly again toward the end of the month. Figure 3 shows the inverse relationship of the average interbank rate in soles over the month.

Figure 2.Average Bank Reserves at BCRP in Soles

(October 1997-June 2000)

Figure 3.Average Interbank Rate in Soles

(October 1997-June 2000)

Source: BCRP; and Fund staff estimates.

103. The daily interbank rate in soles exhibited considerable volatility in the last decade, even though reducing its volatility has long been a concern of monetary policy.78 To help achieve this objective, the central bank started to remunerate overnight sol-denominated deposits of commercial banks for the first time in September 2000, in an effort to set a floor for the overnight sol-denominated interbank rate. Stability in the interbank rate in soles should help lower the average sol-denominated lending rate and increase financial intermediation in soles.79 The dollar-denominated interbank rates were more stable than their sol-denominated counterpart (Figure 4 and Table 4).

Figure 4.Peru: Interbank Overnight Rates, 1997 - 2000

Source: BCRP.

Table 4.Peru: Interbank Rate Volatility. 1997–2000
SolesU.S. Dollars
AverageStd. Dev.AverageStd. Dev.
1997 Q213.23.65.70.1
1997 Q310.22.16.10.2
1997 Q412.92.07.20.4
1998 Q114.94.97.30.1
1998 Q216.63.78.00.5
1998 Q327.88.69.21.2
1998 Q415.94.212.61.0
1999 Q120.04.89.41.9
1999 Q213.11.97.30.2
1999 Q39.24.06.90.2
1999 Q417.81.06.50.3
2000 Q112.03.57.10.8
2000 Q214.92.37.40.4
2000 Q310.82.37.50.2
2000 Q413.51.98.00.7
Source: BCRP.
Source: BCRP.

104. Interbank interest rate volatility has declined in recent months, presumably reflecting an effort by the BCRP to reduce its fluctuation. The standard deviation of this rate has fallen from 6.7 percent in 1998 to 4.9 percent in 1999 and to 2.7 percent in 2000. Fluctuation in the sol-denominated interbank rate cannot be totally eliminated because the use of bank reserves (quantity) as the daily operating instrument for achieving the monthly base money target affects the price of these reserves, namely, the interbank rate, which is freely determined in the interbank market. Thus, if eliminating sol-interbank-rate volatility is an important goal of monetary policy, an alternative to targeting base money in the form of directly targeting the interbank rate should be considered.80

105. High volatility in sol-denominated interbank rates can lead to volatility in sol-denominated lending rates; thus, discouraging borrowing in the domestic currency, even as inflation falls.81 Furthermore, in 1998 and 1999, sol-denominated lending remained below 20 percent of total lending and was significant82 only in sectors dominated by the public sector (public administration, health, and electricity and water services). The share of total bank credits extended to these sectors was less than five percent (see Table 5).

Table 5.Peru: Percent of Outstanding Bank Credits to Sectors by Types of Currency
Sector19981999
SolesU.S. dollarWeight*SolesU.S. dollarWeight*
Agriculture9.390.72.56.893.22.6
Livestock35.464.60.623.376.70.6
Fishing3.196.92.72.397.72.9
Mining6.393.73.24.295.84.1
Industry15.784.325.416.483.626.3
Electricity and Water39.061.01.529.470.62.6
Construction23.376.74.320.879.24.4
Commerce16.383.714.615.184.916.3
Hotels7.292.81.54.595.51.4
Transportation21.178.95.417.083.04.5
Financial services27.472.65.424.675.43.0
Rental services13.986.16.714.785.35.6
Public administration57.142.90.842.557.50.7
Education29.470.60.623.976.10.5
Health34.565.50.529.770.30.3
Other community services14.785.34.514.185.94.4
Others (including consumer loans)24.076.019.823.576.519.9
Total18.581.5100.017.282.8100.0

Share of total outstanding bank credits accounted for by each sector.

Source: SBS.

Share of total outstanding bank credits accounted for by each sector.

Source: SBS.

106. The lack of long-term lending in soles is influenced by the volatility of the interbank interest rates in soles. Confronted with the frequent need to roll over loans, whose future interest rates are uncertain, investors may choose to borrow in dollars, where there is less interest-rate volatility. Smoothing the sol-denominated interbank rate can, therefore, reinforce the authorities’ recent efforts to lengthen the sol-denominated yield curve (for the first time in August 2000, the central bank issued one year CDs while COFIDE, a second-tier public financial institution, issued two-year, fixed-interest-rate instruments in soles).

D. Inflation Targeting as a Framework for Monetary Policy

107. The authorities have expressed interest in inflation targeting and, together with the Fund, they are organizing a seminar on the topic to assess the suitability of this approach for Peru. Without prejudging the conclusion of the seminar, it is widely recognized that inflation targeting is an approach that would increase transparency and strengthen accountability, as well as providing an anchor for inflationary expectations and increasing the predictability of market reactions to monetary policy announcements. Also, countries adopting formal inflation targeting normally use the interbank interest rates as a daily operational target of monetary policy. In the case for Peru, this would lead to lower volatility in interest rates.83

108. Peru has already met the main prerequisites for inflation targeting, namely, central bank independence and policy effectiveness in controlling inflation.84 On transparency, the central bank through its monthly report is moving in the direction of establishing a forum to explain the design and implementation of monetary policy. The May and September reports would update the annual monetary programs as conditions change in the course of the year. Over time, these reports could be expanded and form a basis of a future inflation report.85

109. The central bank is in a good position to tackle nearly all technical issues of inflation targeting, but needs to strengthen its inflation-forecasting model. The central bank would have no problems addressing the choices of a relevant price index (general or core inflation), an inflation target range (point target or band), and a target horizon (one or more years), and the central bank has a firm understanding of the transmission mechanism of monetary policy.86 However, as inflation targeting uses a forward-looking framework to predict the lagged impact of monetary policy and sets conditional inflation forecasts as intermediate targets, the ability to produce a path of credible inflation forecasts is vital. Such forecasts would be used to judge, ex-post, the effectiveness of monetary policy actions. More needs to be done in this area as work on a highly reliable inflation model is still at an early stage.

List of References

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    Berg, A. and E.Borensztein, “The Choice of Exchange Rate Regime and Monetary Target in Highly Dollarized Economies,” IMF Working Paper (WP/00/29), 2000.

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    Blejer, M., Ize, A., and Leone, A. (eds), Inflation Targeting in Practice: Strategic and Operational Issues and Application to Emerging Market Economies, IMF, 2000.

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    Quispe, Z.,Monetary Policy in a Dollarized Economy: The Case of Peru, Central Reserve Bank of Peru, 1998.

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Annex: Summary of the Tax System as of December 2000
Peru: Summary of the Tax System(December 2000)
TaxRateTaxable BaseExemptionsRemarks
1. Income tax
A. Corporate income tax (Category 3)The following are not subject to the tax:
  • - The National Public Sector, except public enterprises.
i. Residents
  • - Legally established cultural, research, welfare, social assistance, and hospital foundations.
  • - Mutual aid entities.
  • - Communal associations of farmers and indigenous groups.
a. General Regime20 percentWorldwide income of enterprises legally regarded as domiciled in Peru.

Expenses necessary for generating and maintaining the source of income may he deducted.
The following are exempt (until 12/31/2002):
  • - Religious institutions and nonprofit institutions dedicated to social assistance, charity, education, cultural, science, art, literature, sports, politics and housing.
  • - Interest on development lending granted by international organizations or foreign governmental institutions.
  • - Interest and other gains on loans granted to the National Public Sector.
  • - Interest on savings in the domestic financial system.
  • - Royalties for technical assistance provided from abroad by state or international agencies.
  • - Capital gains from the sale of securities.
  • - Interest and adjustments to principal from mortgage instruments.
  • - Private (nonprofit) universities.
  • - Interest collected or paid by savings and loan cooperatives.
In December 2000, the general tax rate was reduced from 30 percent to 20 percent. As a transitory measure, during 2001 the rate would remain at 30 percent for corporations but a 10 percent investment tax credit on reinvested profits will be allowed.

Agriculture is taxed at a rate of 15 percent (Agricultural Promotion Law).

In December 1998, the depreciation rates for data processing equipment and for machinery and equipment acquired after 1991 were changed from 20 percent to 25 percent and 10 percent, respectively.

Accelerated depreciation is allowed in mining, hydrocarbons, tourism, agriculture and agri-business; Also, in 2000 sortie restrictions to leasing contracts were introduced, but accelerated depreciation under leasing contracts is still possible.

Category 3 advance payments (general regime):

  • - On the basis of a coefficient applied to monthly receipts. This coefficient is calculated yearly (and may be revised once during the year), as the quotient between the total tax for the previous year and net income during the same period.
  • - Two percent of net income for new businesses or businesses that had no income (paid no tax) in the previous year.
b. Special Regime (RER)2.5 percentNet monthly revenue derived from the Category 3 income of individuals or legal entities domiciled in Peru whose net revenue in the previous fiscal year did not exceeds/. 216,000.Losses generated in a taxable year may be carried forward from year to year, until their full amount has been offset against the net income obtained in the four immediately subsequent fiscal years following the year of the loss (effective 2001). The balance which cannot be offset once this time period has lapsed may not be offset in subsequent years. Previously, the offset began in the first year in which profits were generated.

In 2000, limitations on expenses incurred in countries with low or no taxation (tax-havens), or paid through persons or entities domiciled in such locations were introduced.

The rate of the Special Income Tax Regime (RER) has been reduced from 3 percent to 2.5 percent (Law 27304 of 12/30/98).
ii. Nonresidents
  • - Interest on lines of credit abroad from banks and financial institutions established in Peru
  • - Interest on external loans subject to registration requirements and a preferential interest rate
  • - Leasing of ships and aircraft
  • - Royalties and other income
1 percent



5 percent



10 percent

30 percent
Peruvian-source income of enterprises not legally domiciled in Peru (branches, agencies, or permanent establishments).Beginning in 2001, the tax rate is increased from 1 percent to 5 percent for interest derived from external loans in cash and posted as a credit to Peru’s foreign currency income, or loans at a discounted annual interest rate lower than the prevailing preferential interest rate in the source market plus 3 points. Interest deriving from the use of external credit lines by banks or financial institutions continue to be taxed at 1 percent. Other interest is taxed at a rate of 30 percent.
B. IndividualsAdvance payments:
  • - Category 1 and 2 income: 15 percent monthly.
  • - Category 4 income: 10 percent monthly.
  • - Category 5 income: on the basis of 1/12 of projected annual income.


Law 27356 (10/18/2000) eliminated the exemption from income tax of the gross income collected by professional athletes, sporting clubs, and artists not domiciled in Peru.
2. General sales tax (IGV)
General regime
Total rate

Of which:

- National Treasury

- Municipal budgets (IPM)
18 percent



16 percent

2 percent
The tax is levied on:
  • - Domestic sales of movable goods.
  • - The provision or use of services in Peru.
  • - Construction contracts.
  • - The first sale of structures by their builders. The registered vaule of the land is excluded from the tax base (Supreme Decree 150/2000 which modified a previous provision that established a reference value of the land to 50 percent of the value of the property).
  • - Imports of goods. The taxable base is the c.i.f. price plus customs duties, surcharges, and the excise tax.
The following are exempt until 12/31/2001:
  • a. Goods
    • - Fish and seafood
    • - Cochinilia (red dye)
    • - Bull semen
    • - Whole raw milk
    • - Potatoes and other root vegetables, vegetables, dried vegetables, and other vegetables and fruits
    • - Cereal seeds
    • - Rice (which is taxed by the IEV)
    • - Raw coffee, tea, cocoa, and unprocessed tobacco
    • - Wools and pelts, not carded or combed
    • - Raw cotton
    • - Nonmonetary gold, unrefined or dust
    • - Vehicles for diplomatic use
    • - Books for educational institutions
    • - The first sale of structures valued at less than 35 UITs
  • b. Services
    • - Financial services
    • - Public passenger transportation (except air transport)
    • - International cargo transport - Live shows declared of cultural value by the National Institute of Culture
    • - Sale of beverage and food at snack bars and universities
    • - Construction and repair of foreign ships
    • - Interest on transferable securities issued by enterprises pursuant to the Securities Market Law
    • - Life insurance policies
    • - Postal services intended to complete such services originating abroad


Exports of goods and services, as well as construction contracts performed abroad, are not subject to the IGV.
Tax credit:

Tax credit is accorded for IGV paid on purchases of goods, services, and construction contracts, or paid on imported goods. The tax credit is limited to purchases representing an enterprise expense or cost, in accordance with the income tax legislation, and which are intended for use in operations relating to taxable activities.

Treatment of exports:

Exporters may apply the balance of the tax credit against the income tax or other tax liabilities representing income for the National Treasury. Any residual amount may be refunded in the form of marketable tax certificates (Notas de Credito Neguciables--NCN) or in cash.

The following are regarded as exports of services:

  • - Consulting and technical assistance
  • - Leasing of movable property
  • - Advertising, market research, and public opinion survey services
  • - Personnel placement and administration
  • - Commissions on the provision of credit
  • - Financing, insurance, and reinsurance operations
  • - Telecommunications
  • - Tourism operators (only for sales abroad)


Withholding system:

DU 87-2000 (10/5/2000) created the tax obligations payment system, which consists in the withholding of the IGV by the purchaser. The activities included in (his system include exporting fish meal and gold, as well as the production of ethyl alcohol.
Special sales tax4 percentThe tax is levied on:

  • - The value of domestic sales of rice (all varieties).
  • - The c.i.f. customs value of imports plus import duties on rice (all varieties).




This cascading tax is levied at all stages of the production cycle.
This tax was created by Law 27350 (10/6/2000), which also created a tax obligation payment system applicable to agricultural transactors engaging in the sale of rice. This system consists in the withholding of the tax stemming from the purchase of rice by the persons subject to that tax, designated by the SUNAT, for subsequent deposit in authorized bank accounts.



It bears noting that this tax measure revoked Law 27168 establishing the IGV on the sales of rice producers at a rate of 5 percent.
3. Excise tax (ISC)
Ad valorem rate system:The tax is levied on:

- The sale value, for sales of goods.

- The c.i.f. customs value, plus import duties, for imports.
Effective October 2000, noncarbonated mineral water is taxed at; rate of 17 percent.
- Soft drinks, carbonated and noncarbonated mineral water17 percent
- Low grade alcoholic beverages20 percentVehicle imports through CETICOS are not subject to ISC.
- High grade alcoholic beverager40 percent
- Vehicles (new)10 percentThe base excludes the IGV.
- Vehicles (used)30 percent
- Games of chanceFor soft drinks the base is the ex factory price.
- Lotteries10 percent
- Equestrian events
2 percent
Specific rate system:The tax is levied on:

- The volume sold or imported, expressed in units of measurement established by the Ministry of Economy and Finance.
The following are exempt until December 31,2003:
S/. per gallon
Gasoline- Imports or sales of diesel or residual fuel to enterprises engaged in the generation, marketing, and distribution of electrical power, authorized by supreme decree.
Up to 84 octane2.15
85–90 octane2.81
91–95 octane3.10
Over 95 octane3.41
-Kerosene0.49
-Diesel 21.38
-LPG0.49
S/. per unit
-Beer1.49
-Cigarettes
Black tobacco0.025
Blonde tobacco, standard0.050
Blonde tobacco, premium0.100
4. Impart taxesThe following are exempt from this tax:
- Imports by universities and by cultural and educational institutions.There are two duty rates (12 percent and 20 percent) as well as surtaxes (5 percent and 10 percent), which, taken together, make up the customs duty structure in question.
Number of customs items affectedThe c.i.f. value of imports.
- Imports covered by international agreements.
5,78012 percent- Grants to the public sector and private charitable institutions.
5217 percent
75220 percent- Passengers personal baggage.
29925 percent- Imports by diplomatic personnel and official representatives of international organizations.
430 percent
- Imports of arms for the Armed Forces and national defense.
- Samples without commercial value.
5. Simplified Consolidated Regime (RUS)
Category:Monthly revenue up to:
- Special2,200
- A2,200
- B4,600
- C7,000
- D8,600
- E9,700
- F12,000
- G15,000
- H18,000
Gross tax of S/.

0

80

255

560

910

1,190

1,520

2,040

2,700
Individuals domiciled in Peru who generate Category 3 income and whose gross monthly income does not exceed S/, 18,000.





Taxpayers may deduct from their monthly installments 20 percent of the total amount of purchases subject to IGV, to the extent that these do not extend the Maximum Deductible Credit for the category concerned (approximately 80 percent of gross tax).
Taxpayers concerned pay only the amount of their monthly installment, and are not affected by the income tax, IGV and IES.



Special Regime:

The special regime applies to sellers of fruits, vegetables, and other items exempted under Appendix I to the law on the IGV and ISC, whose incomes do not exceed S/. 2,200 per month. The gross tax for this category is currently nil.
6. Extraordinary Solidarity Tax (IES)5 percentCompensation to workers subject to income tax on Category 4 and 5 income, excluding national holiday and Christmas bonuses.The following are not covered:

  • - Compensation for time of service
  • - Bonuses for national holidays and at Christmas (Law 27349 of 10/4/2000).
  • - Payments to household employees
  • - Annual profit sharing allocations


Category 4 workers may avail themselves of the monthly deduction of 1/12 of 7 UITs.
7. Amazon Investment Promotion Law (Law 27037 of 12/30/98)
Tax benefits are granted to enterprises located in the forest area (area includes 5 departments and selected provinces or districts of another 10 departments) for a period of 50 years (from 1/1/99).
I. Income tax:





Taxpayers in the Departments of Loreto, Madre de Dios, and some districts of Ucayali.
5 percentIncome of enterprises engaged in agriculture, aquaculture, fishery, tourism, and manufacturing activities associated with the processing, transformation, and marketing of commodities from the aforementioned activities, the processing of forestry products, and forest extraction.Taxpayers located in Amazonia who are engaged principally in agriculture and/or the transformation or processing of products described as native and/or alternative crops in this area are exempted.A taxpayer benefiting from this tax advantage must meet domiciliation requirements for the head office, and at least 70 percent of total assets and/or total production must be situated or take place within Amazonia.
Taxpayers located in the rest of Amazonia.10 percent
II. General sales taxThe sale of goods, services, and construction contracts within the area for own consumption.
III. Natural gas, petroleum, and derivativesThe sale of such products within the Departments of Loreto, Ucayali and Madre de Dios is exempt from IGV and ISC.
IV. Special solidarity taxEnterprises located in this zone are exempt.
Table 1.Peru: Aggregate Supply and Demand
19961997199819992000
I. Annual percentage changes

(At constant 1994 prices)
Aggregate supply2.27.5-0.2-1.63.8
Gross domestic product2.56.7-0.41.43.6
Imports of goods and services0.611.40.7-17.14.9
Domestic demand1.36.7-0.9-2.62.9
Public sector0.98.62.94.8-2.6
Consumption4.47.62.93.64.7
Fixed investment 1/-5.710.93.07.2-17.2
Private sector1.46.4-1.4-3.73.3
Consumption2.44.2-1.0-0.24.3
Fixed investment-2.216.3-1.9-16.3-1.1
Change in stocks 2/-3.3-19.6-30.5-5.4110.6
Exports of goods and services9.313.44.55.49.5
(At current prices)
Aggregate supply13.215.36.33.98.0
Gross domestic product13.314.96.35.37.3
Imports of goods and services12.618.06.1-3.511.9
Domestic demand12.514.37.32.26.7
Public sector12.613.811.710.31.6
Consumption17.312.013.39.28.6
Fixed investment 1/2.918.08.113.1-14.3
Private sector12.514.36.60.97.2
Consumption14.312.57.33.58.3
Fixed investment6.322.84.9-8.62.5
Change in stocks 2/-6.6-22.5-31.9-7.1109.8
Exports of goods and services18.923.9-0.917.316.7
II. In percent of nominal GDP
Aggregate supply118.1118.7118.6117.0117.7
Domestic demand105.0104.5105.4102.3101.7
Public sector14.414.315.015.714.9
Consumption10.19.910.510.910.0
Fixed investment 1/4.34.44.54.83.8
Private sector89.889.69086.286.1
Consumption71.570.070.669.470.1
Fixed investment18.319.619.416.816.0
Change in stocks 2/0.80.60.40.40.8
Exports of goods and services13.114.213.214.716.0
Imports of goods and services18.118.618.617.017.7
Sources: Central Reserve Bank of Peru.

Investment of central government and nonfinancial public enterprises.

Computed as a percentage of domestic demand.

Sources: Central Reserve Bank of Peru.

Investment of central government and nonfinancial public enterprises.

Computed as a percentage of domestic demand.

Table 2.Peru: Saving, Investment, and External and Fiscal Balances(In percent of GDP, unless otherwise indicated)
19961997199819992000
I. Saving and Investment
Gross domestic investment23.424.624.222.020.6
Nonfinancial public sector4.34.44.54.83.8
Private sector19.120.219.717.216.8
Saving23.424.624.222.020.6
External6.25.26.43.53.0
National17.219.417.818.517.6
Nonfinancial public sector3.95.24.01.90.8
Financial public sector0.00.10.10.10.1
Private sector13.314.113.716.516.7
II. Balance of Payments
Current account balance-6.2-5.2-6.4-3.5-3.0
Trade balance-3.6-2.9-4.3-1.2-0.7
Investment income-2.9-2.5-2.6-3.0-3.0
Services and current transfers0.40.20.60.70.7
Capital and financial account9.68.14.62.02.7
Nonfinancial public sector 1/0.9-0.40.50.80.5
Private capital 2/8.78.54.11.22.2
Change in central bank net international reserves (increase -)-3.5-2.91.81.50.3
III. Nonfinancial Public Sector
Nonfinancial public sector savings3.95.23.91.80.9
Central government current balance (including interest)1.92.72.0-0.1-0.3
Revenue 3/15.715.915.714.414.5
Expenditure (including interest)13.913.213.714.514.7
Rest of nonfinancial public sector current balance (including interest)2.02.52.01.81.2
Public sector capital expenditure5.05.14.95.04.0
Fixed investment4.34.44.54.83.8
Other0.80.70.40.20.2
Capital revenue0.20.10.20.10.1
Overall surplus or deficit (-)-0.90.2-0.7-3.1-3.0
Financing0.9-0.20.73.13.0
Foreign0.8-0.40.4-0.11.1
Domestic0.10.20.43.11.8
Memorandum items:
Nominal GDP
(In billions of new soles)136.8157.1167.0175.9188.7
(In billions of U.S. dollars)55.759.057.152.054.1
Sources: Central Reserve Bank of Peru.

Includes exceptional financing.

Includes net borrowing by the financial public sector, and errors and omissions.

Excludes grants.

Sources: Central Reserve Bank of Peru.

Includes exceptional financing.

Includes net borrowing by the financial public sector, and errors and omissions.

Excludes grants.

Table 3.Peru: National Accounts at Current Prices(In millions of new soles)
19961997199819992000
Consumption expenditure111,567125,399135,499141,258153,027
General government13,82715,48717,54619,15620,794
Private sector97,740109,912117,953122,102132,233
Gross domestic investment31,98838,63640,46538,62938,949
Fixed capital formation30,94037,70839,78737,98537,508
Public sector 1/5,8506,9047,4648,4407,235
Private sector25,09130,80432,32329,54530,273
Change in stocks1,0489286786431,440
Domestic demand143,555164,035175,963179,887191,976
Foreign balance-6,779-6,947-8,938-4,031-3,257
Exports of goods and services17,97522,27222,07625,90030,228
Imports of goods and services24,75429,21931,01429,93133,485
Gross domestic product at market prices136,776157,088167,025175,856188,719
Source: Central Reserve Bank of Peru.

Central government and nonfinancial public enterprises.

Source: Central Reserve Bank of Peru.

Central government and nonfinancial public enterprises.

Table 4.Peru: National Accounts at Constant Prices(In millions of 1994 new soles)
19961997199819992000
Consumption expenditure89,74893,83893,28693,50397,605
General government9,82010,56210,86411,26011,785
Private sector79,92883,27682,42282,24385,820
Gross domestic investment25,62029,27428,74425,34224,727
Fixed capital formation24,73028,51128,21824,85723,676
Public sector 1/4,6215,1245,2765,6574,685
Private sector20,10923,38722,94219,20118,991
Change in stocks8907635264851,051
Domestic demand115,368123,112122,030118,845122,332
Foreign balance-5,685-6,029-5,435-635169
Exports of goods and services14,54416,49717,24418,16919,904
Imports of goods and services20,22922,52622,67918,80419,735
Gross domestic product at constant prices109,683117,083116,595118,210122,502
Source: Central Reserve Bank of Peru.

Central government and nonfinancial public enterprises.

Source: Central Reserve Bank of Peru.

Central government and nonfinancial public enterprises.

Table 5.Peru: Sectoral Origin of Gross Domestic Product at Constant (1994) Prices
19961997199819992000
(In millions of new soles)
Gross domestic product109,683117,083116,595118,210122,502
Agriculture and livestock8,5939,0609,17510,27410,895
Fishing590579499643699
Mining and petroleum5,0525,5075,8156,5016,724
Manufacturing16,84817,74517,11217,17018,352
Construction6,3037,2437,2956,5096,261
Commerce16,26217,53116,98216,70217,535
Government6,8657,0237,1287,3857,713
Other49,17052,39552,58953,02654,323
(Percentage change)
Gross domestic product2.56.7-0.41.43.6
Agriculture and livestock5.25.41.312.06.0
Fishing-4.8-1.8-13.728.98.7
Mining and petroleum5.19.05.611.83.4
Manufacturing1.55.3-3.60.36.9
Construction-2.314.90.7-10.8-3.8
Commerce0.97.8-3.1-1.65.0
Government3.22.31.53.64.4
Other3.36.60.40.82.4
(As percent of total)
Gross domestic product100.0100.0100.0100.0100.0
Agriculture and livestock7.87.77.98.78.9
Fishing0.50.50.40.50.6
Mining and petroleum4.64.75.05.55.5
Manufacturing15.415.214.714.515.0
Construction5.76.26.35.55.1
Commerce14.815.014.614.114.3
Government6.36.06.16.26.3
Other44.844.845.144.944.3
Source: Central Reserve Bank of Peru.
Source: Central Reserve Bank of Peru.
Table 6.Peru: Growth in Agricultural and Livestock Production(Annual percentage change)
19961997199819992000
Total agricultural and livestock production5.25.41.312.06.0
Agricultural production8.24.1-1.914.26.0
Domestic crops7.67.00.113.45.1
Potatoes-2.53.98.018.42.8
Rice5.421.36.126.2-5.7
Corn12.8-0.511.312.913.9
Wheat16.9-15.318.216.25.3
Other9.97.4-3.810.36.3
Export crops9.2-10.2-13.319.711.3
Cotton23.9-45.7-34.741.729.0
Sugarcane-3.313.3-17.710.010.7
Coffee10.26.06.220.85.5
Livestock production0.98.67.09.36.1
Poultry-0.18.110.512.98.3
Beef2.87.44.87.83.6
Pork3.64.34.72.51.7
Lamb7.45.95.131.9n.a.
Milk5.54.85.31.55.8
Eggs-9.814.93.44.41.9
Other40.820.02.8-1.04.7
Sources: Ministry of Agriculture; and Central Reserve Bank of Peru.
Sources: Ministry of Agriculture; and Central Reserve Bank of Peru.
Table 7.Peru: Agricultural Production(Production in thousands of metric tons; area in thousands of hectares; and yield in metric tons per hectare)
19961997199819992000
Coffee106.5112.9119.9144.9152.8
Area176.3184.6188.6212.3222.9
Yield0.60.60.60.70.7
Corn
Corn (amiláceo)250.8221.6230.5252.6273.0
Area215.6206.6214.6220.9241.0
Yield1.21.11.11.11.1
Corn (duro)559.7605.8702.5806.1927.9
Area185.4210.5229.1237.6270.3
Yield3.02.93.13.43.4
Cotton268.6145.895.3134.9174.0
Area137.191.374.078.898.4
Yield2.01.61.31.71.8
Potato2,308.92,398.12,589.33,066.23,153.6
Area229.4248.6268.9271.0277.5
Yield10.19.69.611.311.4
Rice1,203.21,459.81,548.71,955.01,843.0
Area210.4238.7269.1310.5280.2
Yield5.76.15.86.36.6
Sugarcane6,119.06,930.35,705.36,278.66,947.3
Area54.463.552.660.060.9
Yield112.5109.1108.4105.0114.1
Sources: Ministry of Agriculture; and Central Reserve Bank of Peru.
Sources: Ministry of Agriculture; and Central Reserve Bank of Peru.
Table 8.Peru: Production, Consumption, and Exports of the Fishing Industry
19961997199819992000
(In thousands of metric tons)
For industrial use
Industrial fish catch8,771.76,998.83,696.37,783.59,962.1
Anchovy7,460.45,923.01,205.16,724.99,241.3
Other1,311.31,075.82,491.21,058.6720.7
Fishmeal
Production1,925.01,597.1832.01,739.42,190.8
Exports1,609.81,926.3666.21,474.42,374.0
Domestic consumption165.3181.777.3115.8135.0
Fish oil
Production422.5330.0123.0503.2638.0
Exports221.0242.534.6258.7495.0
For human consumption
Total catch745.3872.0651.6643.8799.3
Fresh250.0254.3249.2255.7324.4
Canned213.9352.1218.2204.3256.8
Frozen222.5209.0128.6115.0139.5
Salted28.823.518.130.536.8
Freshwater30.133.137.538.341.9
Domestic consumption354.6362.5347.0351.0362.0
(Annual percentage change)
Total industrial catch6.9-20.2-47.2110.626.0
Fishmeal production7.6-17.0-47.9109.125.9
Fish oil production13.0-21.9-62.7309.126.8
Total catch for human consumption1.417.0-25.3-1.224.2
Sources: Ministry of Fishing; and Central Reserve Bank of Peru.
Sources: Ministry of Fishing; and Central Reserve Bank of Peru.
Table 9.Peru: Mineral Production by Major Products
19961997199819992000
(Volumes in thousands of recoverable units)
Metals
Copper (MT)373.1383.2356.2393.5404.7
Lead (MT)224.1247.2242.7254.8256.2
Silver (Kg)1,972.82,134.12,067.02,263.52,460.0
Zinc (MT)634.1693.1693.9718.5730.1
Iron (MT)2,988.93,185.33,296.62,636.22,611.4
Petroleum (barrels)43,909.243,157.142,191.438,663.436,828.9
(Percentage change) 1/
Metals
Copper5.12.7-7.010.52.8
Lead2.910.3-1.85.00.6
Silver9.28.2-3.19.58.7
Zinc9.69.30.13.51.6
Iron-25.06.63.5-20.0-0.9
Petroleum-1.2-1.7-2.2-8.4-4.7
Total mineral sector 2/5.19.05.611.83.4
Sources: Ministry of Energy and Mines; and Central Reserve Bank of Peru.

Percentage change in output volume.

Percentage change in output valued at 1994 prices.

Sources: Ministry of Energy and Mines; and Central Reserve Bank of Peru.

Percentage change in output volume.

Percentage change in output valued at 1994 prices.

Table 10.Peru: Sources and Uses of Petroleum and Petroleum Derivatives
19961997199819992000
(Millions of barrels)
Sources74.879.983.872.272.0
Crude petroleum production43.943.242.238.736.8
Petroperu10.40.00.00.00.0
Petrotech6.76.35.85.14.9
Occidental19.118.117.614.813.5
Oxy-Bridas0.80.00.00.00.0
Others6.818.818.818.818.4
Petroleum imports30.936.741.633.635.2
Imports of crude19.625.932.022.621.4
Imports of derivatives11.310.89.611.013.8
Uses74.879.983.872.272.0
Petroleum exports22.026.226.918.316.5
Exports of crude13.616.615.610.25.7
Exports of derivatives7.18.39.67.310.7
Refinery losses of crude0.00.0-2.60.02.2
Domestic consumption of derivatives56.155.256.058.156.7
Gasoline10.510.210.310.1n.a.
Jet fuel3.63.44.03.0n.a.
Kerosene5.15.05.04.9n.a.
Diesel19.620.820.321.3n.a.
Residual11.39.410.911.1n.a.
Other4.54.94.06.2n.a.
1.51.461.51.61.6
Change in stocks
Crude-3.3-1.53.5-4.2-3.4
Derivatives 1/-5.7-5.9-0.5-5.0-4.2
Sources: Ministry of Energy and Mines; and Central Reserve Bank of Peru.

Includes own consumption by refineries and sales of bunker fuel.

Sources: Ministry of Energy and Mines; and Central Reserve Bank of Peru.

Includes own consumption by refineries and sales of bunker fuel.

Table 11.Peru: Manufacturing Production
19961997199819992000
(Index 1994 = 100)
Total107.0112.7108.7109.0116.5
Fishmeal87.684.342.979.3101.5
Food, beverages, and tobacco107.1114.0119.1128.8133.3
Food108.6115.0120.9131.7135.6
Beverages97.8108.5108.8111.0120.0
Tobacco119.3107.1110.4131.1128.5
Textiles, clothing, and leather111.9123.5113.9110.7119.2
Textiles111.0121.8113.2115.0129.5
Leather and furs105.296.080.071.056.7
Leather shoes120.0147.3136.1113.1107.2
Paper130.3129.4132.5138.2164.3
Petroleum derivatives and other105.3114.4113.0108.9116.3
chemical products
Industrial chemical products120.7122.6132.8126.9135.5
Other chemical products101.8123.0105.9104.5113.0
Petroleum refining100.0104.4108.7100.599.2
Rubber products103.5110.4119.5114.8129.5
Plastic products120.8119.4125.0133.9172.6
Nonmetallic mineral products131.7144.8149.6130.8132.3
Glass and glass products169.6194.8204.8184.6169.2
Other119.3128.5131.6113.2120.3
Basic metallic industry113.6121.5128.7132.0137.3
Iron and steel120.6142.6149.5138.9148.5
Nonferrous metals112.0116.8124.2130.5134.9
Metallic products and machinery107.4117.4116.994.6102.5
Metallic products117.1133.5139.3131.9145.9
Nonelectrical machinery111.6127.5111.279.079.9
Electrical machinery and equipment125.7130.8121.093.5100.7
Vehicles76.379.289.660.365.7
Other93.6116.4125.3114.2104.9
(Percentage change)
Total1.55.3-3.60.36.9
Fishmeal5.5-3.8-49.184.927.9
Food, beverages, and tobacco1.86.44.58.13.6
Textiles, clothing, and leather3.410.4-7.8-2.87.7
Paper0.3-0.72.44.318.9
Petroleum derivatives and other chemical products3.18.6-1.2-3.66.8
Nonmetallic mineral products11.110.03.3-12.61.2
Basic metallic industry8.46.96.02.64.0
Metallic product and machinery-9.09.3-0.4-19.08.3
Other-8.324.47.6-8.9-8.1
Sources: Ministry of Industry, Tourism, Integration and International Commercial Negotiations; and Central Reserve Bank of Peru.
Sources: Ministry of Industry, Tourism, Integration and International Commercial Negotiations; and Central Reserve Bank of Peru.
Table 12.Peru: Population and Labor Force Statistics
19961997199819992000
(In thousands of persons)
Population 1/23,94724,37124,80125,23225,662
Labor force (age 14 and older)6,5927,3107,5127,836
Metropolitan Lima
Labor force (age 14 and older) 2/2,9993,3233,3923,534
(In percentage of labor force)
Urban unemployed7.07.77.88.0
Urban underemployed42.741.844.343.5
Sources: Ministry of Labor and Public Welfare; and National Institute of Statistics and Information.

Estimates based on 1993 census data.

Data based on annual household surveys conducted the third quarter of each year in Lima Metropolitan Area.

Sources: Ministry of Labor and Public Welfare; and National Institute of Statistics and Information.

Estimates based on 1993 census data.

Data based on annual household surveys conducted the third quarter of each year in Lima Metropolitan Area.

Table 13.Peru: Strike Activity by Sector 1/(Workers and man-hours in thousands)
19961997199819992000
Total
Number of strikes7766587137
Number of workers affected361917525
Man-hours lost1400319323724182
Mining
Number of strikes26713129
Number of workers affected1212.631
Man-hours lost66542776319
Manufacturing
Number of strikes91414177
Number of workers affected321.721
Man-hours lost174201071919
Construction
Number of strikes212514136
Number of workers affected15131061
Man-hours lost2192241086317
Other
Number of strikes2120172915
Number of workers affected743412
Man-hours lost3423531579127
Source: Ministry of Labor and Public Welfare.

Includes man-hours lost in work stoppages as well as strikes.

Source: Ministry of Labor and Public Welfare.

Includes man-hours lost in work stoppages as well as strikes.

Table 14.Peru: Private Sector Wages and Salaries in the Lima Metropolitan Area 1/2/
In Nominal TermsIn Real Terms 3/
MinimumAverageMinimumAverage
Wage 4/SalariesWagesWage 4/SalariesWages
(In new soles per month)(Index 1988=100)
1996
March132.01,778.0714.326.263.851.0
June132.01,833.0690.025.664.448.2
September132.01,885.1705.625.064.548.0
December215.01,945.0732.039.765.048.6
1997
March215.01,987.0757.039.065.249.4
June300.02,027.3758.853.265.148.4
September345.02,048.5767.060.464.948.3
December345.02,110.4773.459.866.348.3
1998
March345.02,200.4796.857.866.848.1
June345.02,252.7802.556.867.247.6
September345.02,318.5802.856.668.947.4
December345.02,383.8805.856.470.547.4
1999
March345.02,455.7796.555.972.046.4
June345.02,485.5811.555.272.046.7
September345.02,533.3819.354.772.746.8
December345.02,558.0822.654.473.046.7
2000
March 5/391.02,650.4842.161.074.847.3
June410.02,704.3842.463.675.947.0
Sources: Ministry of Labor and Public Welfare; and Central Reserve Bank of Peru.

The annual data are period averages.

Wages and salaries correspond to labor earnings of blue collar and white collar workers, respectively.

Deflated by the consumer price index in the Lima metropolitan area.

Corresponds to the minimum legal income, i.e., the minimum vital salary plus supplementary bonuses.

Minimum Wage: average of S/. 345 and S/. 410 by the days, weighted by the number of days each such wage was in effect.

Sources: Ministry of Labor and Public Welfare; and Central Reserve Bank of Peru.

The annual data are period averages.

Wages and salaries correspond to labor earnings of blue collar and white collar workers, respectively.

Deflated by the consumer price index in the Lima metropolitan area.

Corresponds to the minimum legal income, i.e., the minimum vital salary plus supplementary bonuses.

Minimum Wage: average of S/. 345 and S/. 410 by the days, weighted by the number of days each such wage was in effect.

Table 15.Peru: Prices of Public Goods and Services
19961997199819992000
(Period averages in new soles per unit as specified)
Fuels
Gasoline, 84 octane (gallon)4.75.15.15.77.3
Gasoline, 95 octane (gallon)6.26.76.87.89.5
Diesel 2 (gallon)3.74.44.14.66.3
Kerosene (gallon)3.03.43.23.85.2
Gas (24 lb. cylinder)23.52523.425.330.3
Tariffs
Water
Potable water (30 cubic meters)19.624.93135.336.3
Electricity
Residential (up to 100 kwh/month)32.033.432.336.039.0
Telephone
Residential A (150 calls)53.666.579.687.691.3
(Real Index 1991 = 100)
Fuels
Gasoline, 84 octane (gallon)80.280.274.780.799.6
Gasoline, 95 octane (gallon)77.777.473.281.295.3
Diesel 2 (gallon)102.8113.298.3107.3140.8
Kerosene (gallon)96.7101.088.6102.2134.1
Gas (24 lb. cylinder)129.9124.399.3116.1134.2
Tariffs
Water
Potable water (30 cubic meters)141.7165.7192.4211.7209.8
Electricity
Residential (up to 100 kwh/month)420.8404.2364.4392.6409.9
Telephone
Residential A (150 calls)271.9311.0347.1369.2370.8
Source: Central Reserve Bank of Peru.
Source: Central Reserve Bank of Peru.
Table 16.Peru: Consumer Prices in the Lima Metropolitan Area

(Percentage change) 1/

TotalFoodClothingHousing, Fuel, and ElectricityFurnitureMedical ExpensesTransport & CommunitionsLeisure ActivitiesOtherTradables 2/Nontradables 3/
1996
March11.612.610.414.39.513.22.615.88.110.212.6
June11.010.79.112.99.513.715.012.16.510.211.6
September11.712.67.810.68.013.715.810.36.78.813.8
December11.811.37.313.57.713.824.810.26.68.913.9
Average11.512.29.012.78.913.511.212.57.09.612.9
1997
March9.36.57.612.68.914.527.112.25.97.110.8
June9.59.37.37.78.812.513.912.26.76.011.9
September8.17.27.36.49.311.913.611.77.16.29.4
December6.56.07.22.19.411.57.511.08.15.77.0
Average8.57.17.48.39.012.817.811.96.96.410.0
1998
March8.210.26.20.98.89.44.87.58.17.78.5
June7.79.25.13.18.88.54.27.57.66.98.2
September6.67.25.14.98.67.83.18.27.37.56.0
December6.05.85.65.88.57.53.18.87.87.35.1
Average7.38.35.63.18.78.74.38.27.87.37.2
1999
March3.40.37.19.08.38.34.58.08.94.92.4
June2.9-1.18.210.36.410.35.98.39.35.31.3
September3.4-0.97.814.04.210.98.67.09.74.52.7
December3.7-0.96.513.83.410.913.56.39.13.93.6
Average3.5-0.37.411.36.09.67.27.69.24.92.5
2000
March3.90.24.412.12.79.913.34.78.03.34.3
June3.2-0.12.910.03.37.712.54.46.63.82.8
September3.91.62.77.44.76.911.54.65.93.93.9
December3.71.62.612.14.66.25.84.64.34.73.1
Average3.80.73.510.63.78.111.54.76.53.83.7
Source: National Institute of Statistics and Information.

With respect to the same period of the preceding year.

Foodstuffs, textiles, electric and home appliances, and other tradables.

Fuels, public services, and other foodstuffs and services.

Source: National Institute of Statistics and Information.

With respect to the same period of the preceding year.

Foodstuffs, textiles, electric and home appliances, and other tradables.

Fuels, public services, and other foodstuffs and services.

Table 17.Peru: Social and Economic Welfare Indicators
1990199419961997199819992000
Income and demographic indicators
Population (thousands)21,56923,13023,94724,37124,80125,23225,662
GDP per capita
Real, percent change-6.910.90.74.9-2.1-0.31.8
Nominal, US$ thousands1,3881,9402,3262,4192,3022,0592,107
Income inequality (Gini coefficient)0.470.48
Poverty rate 1/2/55.054.050.7
Extreme poverty rate 1/3/26.819.014.7
Health and health care
Doctors
(per 10,000 of population)10.27.110.3
Hospital beds
(per 10,000 of population)15.117.9
Malnutrition rate 4/30.023.8
Education
Illiteracy rate (percent) 5/7.7
School attendance
Gross enrollment ratio 6/73.574.0
Housing7/
Access to utilities (percent)
Electricity68.873.777.6
Potable water65.073.274.1
Sewage48.258.9
Sources: National Institute of Statistics and Information; Ministry of Education; and the World Bank.

Figures in first column pertain to 1991.

Poverty rate is the percentage of the population whose spending is not able to finance a basic bundle of goods. The value of such a bundle is the poverty line.

Extreme poverty is the percentage of the population whose spending is unable to cover a subsistence bundle of goods.

Percent of children below five years of age.

Census data for 1972, 1981, and 1993; 1998 INEI. Illiteracy rates are calculated for population ages 15 and older.

In percent of population age 5 to 24.

National Household Survey 1997 and 2000 (ENNIV 1997 y 2000), Instituto Cuánto.

Sources: National Institute of Statistics and Information; Ministry of Education; and the World Bank.

Figures in first column pertain to 1991.

Poverty rate is the percentage of the population whose spending is not able to finance a basic bundle of goods. The value of such a bundle is the poverty line.

Extreme poverty is the percentage of the population whose spending is unable to cover a subsistence bundle of goods.

Percent of children below five years of age.

Census data for 1972, 1981, and 1993; 1998 INEI. Illiteracy rates are calculated for population ages 15 and older.

In percent of population age 5 to 24.

National Household Survey 1997 and 2000 (ENNIV 1997 y 2000), Instituto Cuánto.

Table 18.Peru: Fiscal Operations of the Combined Public Sector 1/(In millions of new soles)
19961997199819992000
Central government primary balance1,4901,5641,406-1,740-778
Revenue22,21825,29326,78525,95727,978
Current21,52225,00126,17425,33427,299
Capital697292612624679
Noninterest expenditure20,72923,72925,37927,69728,756
Current15,68017,93419,75621,79723,671
Capital5,0485,7955,6235,9005,085
Rest of the general government primary balance39467677699354
Revenue6,3067,8908,6619,40810,417
Current6,2707,8598,6239,36910,157
Capital36323838260
Noninterest expenditure5,9127,2157,8849,30810,063
Current4,6375,7386,3927,6488,251
Capital1,2751,4771,4921,6601,812
Public enterprises primary balance3491,069-15857-861
Current balance1,3711,9381,2161,658501
Capital balance-1,022-869-1,375-1,601-1,363
Nonfinancial public sector primary balance2,2323,3092,024-1,583-1,285
Central bank operating balance4112217519735
Combined public sector primary balance2,2733,4312,199-1,386-1,250
Interest payments3,5072,9573,2753,8074,300
Combined public sector overall balance-1,234475-1,075-5,192-5,550
Statistical discrepancy
Financing1,234-4751,0755,1925,550
External financing1,092-591642-1112,096
Domestic financing-5,017-1,277-2524,0701,994
Privatization5,1591,3936851,2331,460
Sources: Central Reserve Bank of Peru; and Ministry of Economy and Finance.

Comprises the operations of the nonfinancial public sector and the operating balance of the central bank.

Sources: Central Reserve Bank of Peru; and Ministry of Economy and Finance.

Comprises the operations of the nonfinancial public sector and the operating balance of the central bank.

Table 19.Peru: Fiscal Operations of the Combined Public Sector 1/(In percent of GDP)
19961997199819992000
Central government primary balance1.10.90.9-1.0-0.4
Revenue16.215.715.814.814.8
Current15.715.615.414.414.5
Capital0.50.20.30.40.4
Noninterest expenditure15.214.814.915.715.2
Current11.511.311.612.412.5
Capital3.73.53.23.42.7
Rest of the general government primary balance0.30.30.50.10.3
Revenue4.65.65.95.45.5
Current4.65.45.85.35.4
Capital0.00.20.10.00.1
Noninterest expenditure4.35.35.45.35.2
Current3.44.24.44.34.3
Capital0.91.11.00.91.0
Public enterprise primary balance0.30.6-0.10.0-0.5
Current balance1.01.20.71.00.3
Capital balance-0.7-0.5-0.8-0.9-0.7
Nonfinancial public sector primary balance1.61.81.2-0.9-0.7
Central bank operating balance0.00.10.10.10.0
Combined public sector primary balance1.71.91.3-0.8-0.7
Interest payments2.61.91.92.22.3
Combined public sector overall balance-0.90.0-0.6-3.0-3.0
Statistical discrepancy0.0-0.1-0.10.00.0
Financing0.9-0.10.53.03.0
External financing0.8-0.60.40.01.2
Domestic financing-3.7-0.4-0.32.31.1
Privatization3.80.90.40.70.8
Memorandum items:
General government revenue19.019.119.117.817.8
General government non-interest expenditure17.617.117.518.717.9
Public sector final demand 2/13.813.914.515.114.2
General government expenditure plus public enterprise investment20.620.120.321.520.7
Sources: Central Reserve Bank of Peru; and Ministry of Economy and Finance.

Comprises the operations of the nonfinancial public sector and the operating balance of the central bank.

General government expenditure less transfers to households and interest payments, plus investment by public enterprises.

Sources: Central Reserve Bank of Peru; and Ministry of Economy and Finance.

Comprises the operations of the nonfinancial public sector and the operating balance of the central bank.

General government expenditure less transfers to households and interest payments, plus investment by public enterprises.

Table 20.Peru: Fiscal Operations of the Central Government(In millions of new soles)
19961997199819992000
Current primary balance5,8427,0676,4173,5363,627
Current revenue21,52225,00126,17425,33427,299
Tax revenue19,03622,12222,99521,87322,514
Direct taxes5,9826,8046,8456,0726,162
Indirect taxes13,05415,31716,15015,80116,352
Other current revenue2,4852,8793,1793,4604,785
Current noninterest expenditure15,68017,93419,75621,79723,671
Labor services and pensions 1/8,0389,53510,41611,77812,403
Goods and nonlabor services4,6194,7105,4185,5986,378
Transfers and other3,0243,6893,9224,4214,890
Capital balance-4,352-5,503-5,011-5,276-4,406
Capital revenue697292612624679
Capital expenditure5,0485,7955,6235,9005,085
Gross capital formation3,9214,4484,9645,6524,590
Other1,1281,347659248495
Primary balance1,4901,5641,406-1,740-778
Interest payments3,2892,7893,1193,6744,144
External3,2132,6732,9443,4363,599
Domestic76116176238545
Overall balance-1,799-1,225-1,713-5,414-4,922
Statistical discrepancy
Financing1,7991,2251,7135,4144,922
Sources: Central Reserve Bank of Peru; and Ministry of Economy and Finance.

Includes wages, salaries, pensions and employer contributions to social security.

Sources: Central Reserve Bank of Peru; and Ministry of Economy and Finance.

Includes wages, salaries, pensions and employer contributions to social security.

Table 21.Peru: Fiscal Operations of the Central Government(In percent of GDP)
19961997199819992000
Current primary balance4.34.23.82.01.9
Current revenue15.715.615.414.414.5
Tax revenue 1/13.914.614.212.712.2
Direct taxes4.44.54.33.43.3
Indirect taxes9.510.19.99.29.0
Other current revenue1.80.91.21.72.2
Current noninterest expenditure11.511.311.612.412.5
Labor services 2/5.95.96.16.76.6
Goods and nonlabor services3.42.42.73.03.2
Transfers and other2.23.12.92.72.8
Capital balance-3.2-3.3-2.9-3.0-2.3
Capital revenue0.50.20.30.40.4
Capital expenditure3.73.53.23.42.7
Gross capital formation2.92.22.32.72.1
Other0.81.30.90.70.6
Primary balance1.10.90.9-1.0-0.4
Interest payments2.41.81.82.12.3
External2.31.71.72.02.0
Domestic0.10.10.10.10.3
Overall balance-1.3-0.9-1.0-3.1-2.7
Statistical discrepancy0.0-0.1-0.10.00.0
Financing1.30.80.93.12.7
Sources: Central Reserve Bank of Peru; and Ministry of Economy and Finance.

Net of tax on assets of public enterprises and of central government payroll tax (IES) payments.

Includes wages, salaries, pensions and employer contributions to social security.

Sources: Central Reserve Bank of Peru; and Ministry of Economy and Finance.

Net of tax on assets of public enterprises and of central government payroll tax (IES) payments.

Includes wages, salaries, pensions and employer contributions to social security.

Table 22.Peru: Central Government Revenue(In millions of new soles)
19961997199819992000
Current revenue21,52225,00126,17425,33427,299
Tax revenue 1/19,03622,12222,99521,87322,514
Income tax4,9815,7105,8615,0725,126
Advance payments4,1805,1545,3324,6774,623
Annual filing801556530394504
Payroll tax (FONAVI)1,0011,0949841,0001,036
Import duties2,3082,4712,8912,8482,871
Domestic consumption taxes11,34013,71014,46714,47515,351
Value-added tax 2/8,57810,34411,04011,02911,976
Domestic4,7235,9296,3846,4707,043
Imports3,8564,4154,6554,5594,933
Excises2,7613,3653,4273,4463,375
Petroleum derivatives1,5991,9312,0002,0922,057
Other1,1621,4341,4261,3541,319
Other tax revenue269646586579825
Tax refunds-863-1,509-1,794-2,101-2,695
Other current revenue2,4852,8793,1793,4604,785
Resources of ministries and other nontax revenues2,1672,4932,8103,1934,620
Interest on privatization funds319386369268165
Capital revenue697292612624679
Grants253141197203225
Transfers from public enterprises444151415421454
Total revenue and grants22,21825,29326,78525,95727,978
Memorandum items:
Tax revenue earmarked for municipalities9781,1771,2311,2201,320
Sources: Central Reserve Bank of Peru; Ministry of Economy and Finance; and SUNAT.

Includes revenues from FONAVI/IES. In 1998, the contribution to FONAVI was replaced by the Impuesto Extraordinario de Solidaridad (IES).

Includes the part earmarked for municipal governments (IPM), equal to 2 percentage points of the VAT rate.

Sources: Central Reserve Bank of Peru; Ministry of Economy and Finance; and SUNAT.

Includes revenues from FONAVI/IES. In 1998, the contribution to FONAVI was replaced by the Impuesto Extraordinario de Solidaridad (IES).

Includes the part earmarked for municipal governments (IPM), equal to 2 percentage points of the VAT rate.

Table 23.Peru: Central Government Revenue(In percent of GDP)
19961997199819992000
Current revenue15.715.915.714.414.5
Tax revenue 1/13.914.113.812.411.9
Income tax3.63.63.52.92.7
Advance payments3.13.33.22.72.4
Annual filing0.60.40.30.20.3
Payroll tax (FONAVI)0.70.70.60.60.5
Import duties1.71.61.71.61.5
Domestic consumption taxes8.38.78.78.28.1
Value-added tax 2/6.36.66.66.36.3
Domestic3.53.83.83.73.7
Imports2.82.82.82.62.6
Excises2.02.12.12.01.8
Petroleum derivatives1.21.21.21.21.1
Other0.80.90.90.80.7
Other tax revenue0.20.40.40.30.4
Tax refunds-0.6-1.0-1.1-1.2-1.4
Other current revenue1.81.81.92.02.5
Resources of ministries and other nontax revenues1.61.61.71.82.4
Interest on privatization funds0.20.20.20.20.1
Capital revenue0.50.20.40.40.4
Grants0.20.10.10.10.1
Transfers from public enterprises0.30.10.20.20.2
Total revenue and grants16.216.116.014.814.8
Memorandum items:
Tax revenue earmarked for municipalities0.70.70.70.70.7
Sources: Central Reserve Bank of Peru; Ministry of Economy and Finance; and SUNAT.

Includes revenues from FONAVI/IES. In 1998, the contribution to FONAVI was replaced by the Impuesto Extraordinario de Solidaridad (IES).

Includes the part earmarked for municipal governments (IPM), equal to two percentage points of the VAT rate.

Sources: Central Reserve Bank of Peru; Ministry of Economy and Finance; and SUNAT.

Includes revenues from FONAVI/IES. In 1998, the contribution to FONAVI was replaced by the Impuesto Extraordinario de Solidaridad (IES).

Includes the part earmarked for municipal governments (IPM), equal to two percentage points of the VAT rate.

Table 24.Peru: Central Government Expenditure(In millions of soles)
19961997199819992000
Current noninterest expenditure15,68017,93419,75621,79723,671
Labor services8,0389,53510,41611,77812,403
Wages and salaries5,4336,3976,9797,7748,187
Regular payroll4,5945,6396,1476,9377,340
Additional payments839758832837848
Pensions2,2392,6342,8943,2813,420
Social security contributions365504543724796
Goods and nonlabor services4,6194,7105,4185,5986,378
Transfers3,0243,6893,9224,4214,890
To the private sector8841,0459301,0951,130
To the rest of the nonfinancial public sector2,1392,6452,9923,3263,760
Public pension system (ONP)3133886011,0151,296
Local governments1,3161,6471,7881,6981,875
Other public institutions510610603612589
Capital expenditure5,0485,7955,6235,9005,085
Gross capital formation3,9214,4484,9645,6524,590
Other capital expenditure1,1281,347659248495
FONAVI 1/739476-17-18-98
Transfers to the rest of the nonfinancial public sector341703565108300
Public pension system (ONP)00000
Local governments0000235
Other public institutions34170356510865
Other48169111157294
Interest payments3,2892,7893,1193,6744,144
External3,2132,6732,9443,4363,599
Domestic76116176238545
Total central government expenditure24,01726,51828,49831,37132,900
Memorandum item:
Total noninterest expenditure20,72923,72925,37927,69728,756
Sources: Central Reserve Bank of Peru; Ministry of Economy and Finance; and SUNAT.

FONAVI was a fund that provided housing loans and was funded by the payroll tax. Excludes loans to Banco de Materiales, already included in transfers to nonfinancial public sector.

Sources: Central Reserve Bank of Peru; Ministry of Economy and Finance; and SUNAT.

FONAVI was a fund that provided housing loans and was funded by the payroll tax. Excludes loans to Banco de Materiales, already included in transfers to nonfinancial public sector.

Table 25.Peru: Central Government Expenditure(In percent of GDP)
19961997199819992000
Current noninterest expenditure11.511.411.812.412.5
Labor services and pensions5.96.16.26.76.6
Wages and salaries4.04.14.24.44.3
Regular payroll3.43.63.73.93.9
Additional pays0.60.50.50.50.4
Pensions1.61.71.71.91.8
Social security contributions0.30.30.30.40.4
Goods and nonlabor services3.43.03.23.23.4
Transfers2.22.32.32.52.6
To the private sector0.60.70.60.60.6
To the rest of the nonfinancial public sector1.61.71.81.92.0
Public pension system (ONP)0.20.20.40.60.7
Local governments1.01.01.11.01.0
Other public institutions0.40.40.40.30.3
Capital expenditure3.73.73.43.42.7
Gross capital formation2.92.83.03.22.4
Other capital expenditure0.80.90.40.10.3
FONAVI 1/0.50.30.00.0-0.1
Transfers to the rest of the nonfinancial public sector0.20.40.30.10.2
Public pension system (ONP)0.00.00.00.00.0
Local governments0.00.00.00.00.1
Other public institutions0.20.40.30.10.0
Other0.00.10.10.10.2
Interest payments2.41.81.92.12.2
External2.31.71.82.01.9
Domestic0.10.10.10.10.3
Total central government expenditure17.616.917.117.817.4
Memorandum item:
Total noninterest expenditure15.215.115.215.715.2
Sources: Central Reserve Bank of Peru; Ministry of Economy and Finance; and SUNAT.

FONAVI was a fund that provided housing loans and was funded by the payroll tax. Excludes loans to Banco de Materiales, already included in transfers to nonfinancial public sector.

Sources: Central Reserve Bank of Peru; Ministry of Economy and Finance; and SUNAT.

FONAVI was a fund that provided housing loans and was funded by the payroll tax. Excludes loans to Banco de Materiales, already included in transfers to nonfinancial public sector.

Table 26.Peru: Operations of the Rest of the General Government 1/(In millions of new soles)
19961997199819992000
Current revenue6,2707,8598,6239,36910,157
Tax revenue388431470437470
Contributions2,3782,8042,7952,9453,106
Nontax revenue1,8092,4582,8313,1153,243
Transfers1,6952,1672,5262,8723,337
Current noninterest expenditure4,6375,7386,3927,6488,251
Labor services1,2391,5801,6981,8982,046
Goods and services1,7792,2062,5822,7572,959
Transfers1,6191,9512,1122,9943,246
Current balance1,6332,1212,2311,7211,906
Capital revenue36323838260
Capital expenditure1,2751,4771,4921,6601,812
Gross capital formation1,2601,4591,4671,6071,787
Other1518265325
Primary balance39467677699354
Interest payments4355555546
External00000
Domestic4355555546
Overall balance35162172244308
Statistical discrepancy
Financing-351-621-722-44-308
Foreign30000
Domestic-354-621-722-44-308
Sources: Central Reserve Bank of Peru; and Ministry of Economy and Finance.

Comprises local governments, social security, universities, and regulatory agencies.

Sources: Central Reserve Bank of Peru; and Ministry of Economy and Finance.

Comprises local governments, social security, universities, and regulatory agencies.

Table 27.Peru: Operations of the Rest of the General Government 1/(In percent of GDP)
19961997199819992000
Current revenue4.65.05.25.35.4
Tax revenue0.30.30.30.20.2
Contributions1.71.81.71.71.6
Nontax1.31.61.71.81.7
Transfers1.21.41.51.61.8
Current noninterest expenditure3.43.73.84.34.4
Labor services0.91.01.01.11.1
Goods and services1.31.41.51.61.6
Transfers1.21.21.31.71.7
Current balance1.21.41.31.01.0
Capital revenue0.00.00.00.00.1
Capital expenditure0.90.90.90.91.0
Gross capital formation0.90.90.90.90.9
Other0.00.00.00.00.0
Primary balance0.30.40.50.10.2
Interest payments0.00.00.00.00.0
External0.00.00.00.00.0
Domestic0.00.00.00.00.0
Overall balance0.30.40.40.00.2
Statistical discrepancy
Financing-0.3-0.4-0.40.0-0.2
Foreign0.00.00.00.00.0
Domestic-0.3-0.4-0.40.0-0.2
Sources: Central Reserve Bank of Peru; and Ministry of Economy and Finance.

Comprises local governments, social security, universities, and regulatory agencies.

Sources: Central Reserve Bank of Peru; and Ministry of Economy and Finance.

Comprises local governments, social security, universities, and regulatory agencies.

Table 28.Peru: Operations of the Public Enterprises(In millions of new soles)
19961997199819992000
Current receipts12,30411,3889,52410,72812,989
Gross sales11,38110,5868,6699,80412,134
Other923802855924855
Current noninterest expenditure10,9329,4508,3089,07012,488
Labor services1,4501,1591,1261,066996
Goods and services5,6035,1244,0214,6166,699
Taxes3,1602,6082,5392,7453,242
Other7195586226431,551
Capital revenue34470365010890
Capital expenditure1,3671,5712,0251,7091,452
Gross capital formation6689981,0331,181866
Transfers 1/444151415421454
Other254422577107132
Primary balance3491,069-15857-861
Interest payments17511210178110
External724293352
Domestic16888724558
Overall balance173957-259-20-972
Statistical discrepancy
Financing-173-95725920972
Foreign11-6028120255
Domestic-184-354178-181917
Sources: Central Reserve Bank of Peru; and Ministry of Economy and Finance.

To the rest of the nonfinancial public sector.

Sources: Central Reserve Bank of Peru; and Ministry of Economy and Finance.

To the rest of the nonfinancial public sector.

Table 29.Peru: Operations of the Public Enterprises(In percent of GDP)
19961997199819992000
Current receipts9.07.25.76.16.9
Gross sales8.36.75.25.66.4
Other0.70.50.50.50.5
Current noninterest expenditure8.06.05.05.26.6
Labor services1.10.70.70.60.5
Goods and services4.13.32.42.63.5
Taxes2.31.71.51.61.7
Other0.50.40.40.40.8
Capital revenue0.30.40.40.10.0
Capital expenditure1.01.01.21.00.8
Gross capital formation0.50.60.60.70.5
Transfers 1/0.30.10.20.20.2
Other0.20.30.30.10.1
Primary balance0.30.7-0.10.0-0.5
Interest payments0.10.10.10.00.1
External0.00.00.00.00.0
Domestic0.10.10.00.00.0
Overall balance0.10.6-0.20.0-0.5
Statistical discrepancy
Financing-0.1-0.60.20.00.5
Foreign0.0-0.40.00.10.0
Domestic-0.1-0.20.1-0.10.5
Sources: Central Reserve Bank of Peru; and Ministry of Economy and Finance.

To the rest of the nonfinancial public sector.

Sources: Central Reserve Bank of Peru; and Ministry of Economy and Finance.

To the rest of the nonfinancial public sector.

Table 30.Peru: Functional Classification of Central Government Expenditure
1997199819992000
(In percent of GDP)
Total18.817.319.018.3
Planning and Administration5.64.04.74.5
Debt service4.83.03.43.8
Administration0.80.91.20.7
Pensions and social assistance3.63.54.14.1
Pensions2.62.73.03.2
Other social assistance1.00.81.00.9
Education2.72.73.02.9
Preprimary0.20.20.30.2
Primary1.01.01.11.0
Secondary0.70.70.70.7
Tertiary0.50.50.60.5
Other0.30.30.30.4
Defense and national security2.92.92.82.9
Health and water1.41.51.51.6
Water and sewage0.20.20.20.1
Healthcare services1.31.31.41.4
Transportation1.10.91.00.6
Agriculture0.60.70.70.7
Justice0.40.40.40.4
Energy and natural resources0.20.20.20.1
Foreign relations0.10.20.20.2
Legislative0.10.10.10.1
Housing and urban development0.00.10.10.1
Industry, commerce, and services0.10.10.10.1
Fishing0.10.00.10.1
Communications0.00.00.00.0
Employment0.00.00.00.0
Memorandum items:
Total social expenditure6.96.57.06.8
Budgetary social expenditure 1/5.15.05.55.3
ESSALUD 2/1.11.21.41.5
Fonavi 3/0.80.30.10.0
GDP (in millions of soles)157,089167,026175,855188,719
Source: Ministry of Economy and Finance.

Includes education, health and sanitation and other social assistance.

Total expenditure by Essalud, the public health insurance administration.

Net operations of the national housing fund (Fonavi), loan disbursements and amortizations received.

Source: Ministry of Economy and Finance.

Includes education, health and sanitation and other social assistance.

Total expenditure by Essalud, the public health insurance administration.

Net operations of the national housing fund (Fonavi), loan disbursements and amortizations received.

Table 31.Peru: Monetary Survey
19961997199819992000
S/. per US$2.452.702.873.453.60
(End-of-period stock, in millions of new soles)
I. Central Reserve Bank
Net international reserves20,29827,00025,64228,14928,693
Net domestic assets-17,053-23,173-21,692-23,518-24,142
Net credit to the public sector 1/-8,810-11,666-11,585-10,491-10,556
Banking system (net)-8,279-11,077-9,360-10,954-11,546
Other36-430-747-2,073-2,040
Currency in circulation3,2453,8273,9504,6314,551
II. Banking system
Net international reserves21,08521,09419,76025,63026,928
Net medium-and long-term foreign liabilities122227684333n.a.
Net domestic assets8,95415,57617,98719,66821,148
Net credit to the nonfinancial public sector-13,937-16,242-16,593-16,381-14,725
Credit to the private sector28,02938,41943,41949,16649,975
Other-5,138-6,602-8,839-13,118-14,101
Liabilities to the private sector30,16136,89638,43245,63148,076
(Change in percent of currency in circulation at the beginning of the period) 2/
I. Central Reserve Bank
Net domestic assets-151.8-126.278.485.913.0
Net credit to the public sector 1/-114.8-60.120.787.98.2
Banking system (net)-42.2-62.060.92.9-3.6
Other5.3-4.2-3.2-4.98.4
Currency in circulation6.617.93.217.2-1.7
(Change in percent of liabilities to the private sector at the beginning of the period) 2/
II. Banking System
Net domestic assets4.716.77.10.12.2
Net credit to the nonfinancial public sector-24.5-3.21.6-6.64.6
Credit to the private sector31.225.98.2-2.6-2.0
Other-1.9-6.0-2.7-3.9-0.4
Liabilities to the private sector28.015.00.24.32.2
Sources: Central Reserve Bank of Peru.

Includes net credit to Banco de la Nation.

Flows in foreign currency are valued at the program exchange rate.

Sources: Central Reserve Bank of Peru.

Includes net credit to Banco de la Nation.

Flows in foreign currency are valued at the program exchange rate.

Table 32.Peru: Monetary and Quasi-Money
19961997199819992000
(In millions of nuevos soles, end-of period stocks) 1/
Money and quasi-money31,37637,07340,94746,17947,421
Money5,5236,5906,6237,467n.a.
Currency3,2453,8273,9504,6314,551
Demand deposits2,2782,7632,6732,837n.a.
Quasi-money25,85330,48334,32438,712n.a.
In domestic currency4,7946,3656,0216,642n.a.
In foreign currency 1/21,06024,11828,30332,07133,036
(In millions of U.S. dollars)8,1008,8678,9859,1379,359
(In percent of GDP) 2/
Money and quasi-money19.721.423.125.124.6
Money3.33.53.73.6n.a.
Currency1.92.02.12.1n.a.
Demand deposits1.41.51.61.5n.a.
Quasi-money16.418.019.521.5n.a.
In domestic currency3.33.53.83.7n.a.
In foreign currency13.014.515.617.8n.a.
Sources: Central Reserve Bank of Peru.

Foreign currency stocks converted to domestic currency using end-of-period exchange rates.

Average stocks as percent of GDP.

Sources: Central Reserve Bank of Peru.

Foreign currency stocks converted to domestic currency using end-of-period exchange rates.

Average stocks as percent of GDP.

Table 33.Peru: Selected Interest Rates on Domestic Currency Operations
Effective Interest Rates 1/
Lending 2/Deposit 3/Central Bank
NominalReal 4/NominalReal 4/Rediscounts
(In percent per annum)
1996
March25.612.515.03.015.7
June25.613.114.73.316.8
September26.012.814.72.716.0
December27.413.915.02.818.2
1997
March28.017.115.35.518.0
June30.218.915.65.615.3
September31.121.314.86.2--
December31.123.114.27.316.0
1998
March29.920.113.85.2--
June29.320.113.95.830.8
September31.523.416.29.040.3
December33.225.618.411.718.7
1999
March33.529.118.814.9--
June31.928.217.914.625.6
September28.724.413.19.3--
December27.623.014.110.017.8
2000
January28.223.514.410.2--
February28.323.414.610.2--
March27.823.013.89.5--
April27.723.013.79.5--
May28.224.113.710.0--
June27.923.913.610.1--
July28.524.213.29.4--
August29.224.512.88.7--
September27.923.112.38.1--
October27.722.512.47.8--
November27.122.212.58.114.0
December26.521.912.58.5--
Source: Central Reserve Bank of Peru

Weighted average (by share of bank paticipation in the banking system).

Average rate on loans of up to 360 days.

Average rate on deposits of 31–179 days.

Deflated by consumer price index.

Source: Central Reserve Bank of Peru

Weighted average (by share of bank paticipation in the banking system).

Average rate on loans of up to 360 days.

Average rate on deposits of 31–179 days.

Deflated by consumer price index.

Table 34.Peru: Selected Interest Rates on Foreign Currency Operations(In percent per year)
Efective Interest Rates 1/Central Bank Remuneration on Reserves in Foreign Currency 4/
Lending 2/Deposit 3/
1996
March16.19.25.3
June15.98.55.4
September15.88.24.5
December15.87.64.5
1997
March15.57.34.5
June15.57.34.4
September15.17.04.3
December15.16.84.5
1998
March15.36.54.3
June15.46.54.3
September15.66.34.5
December16.57.14.2
1999
March16.46.94.0
June16.86.44.2
September15.86.04.6
2000
January13.65.75.9
February13.65.76.0
March13.65.66.1
April13.45.66.2
May13.35.76.7
June13.05.76.7
July12.85.76.6
August12.75.66.6
September12.15.76.6
October12.05.76.7
November12.15.76.7
December11.95.66.4
Source: Central Reserve Bank of Peru.

Weighted average (by share of bank participation in the banking system).

Average rate on loans of up to 360 days.

Average rate on deposits of 31–179 days.

Remuneration is paid on the difference between required reserves and minimum legal reserves.

Source: Central Reserve Bank of Peru.

Weighted average (by share of bank participation in the banking system).

Average rate on loans of up to 360 days.

Average rate on deposits of 31–179 days.

Remuneration is paid on the difference between required reserves and minimum legal reserves.

Table 35.Peru: Summary Accounts of the Banking System(In millions of nuevos soles; foreign currency accounts are valued at end-of-period exchange rate)
19961997199819992000
DomesticForeignDomesticForeignDomesticForeignDomesticForeignDomesticForeign
CurrencyCurrencyTotalCurrencyCurrencyTotalCurrencyCurrencyTotalCurrencyCurrencyTotalCurrencyCurrencyTotal
I. Central Reserve Bank
End-of-period exchange rate (S/. per US$)2.602.723.133.483.52
Net international reserves21,54121,54127,20027,20028,14428,14428,63828,63828,31828,318
Foreign assets24,20224,20229,67129,67130,31030,31030,52630,52629,76929,769
Foreign liabilities2,6612,6612,4712,4712,1662,1661,8871,8871,4511,451
Medium and long-term
foreign assets05095090579579-7781773-28956928-81,0461,038
Net domestic assets3,267-21,931-18,6643,874-27,701-23,8273,968-28,841-24,8734,785-29,519-24,7344,970-29,286-24,316
Nonfinancial public sector336-8,300-7,964437-11,200-10,764613-12,590-11,977181-10,338-10,15821-9,462-9,441
- Central Goverment341-8,224-7,884458-7,989-7,532614-6,757-6,144405-3,924-3,519124-2,153-2,029
- Rest of the nonfinancial public sector-4-76-80-21-3,211-3,232-1-5,832-5,833-225-6,414-6,639-103-7,308-7,412
Public sector000000000000000
Banking system-968-9,166-10,133-2,113-10,022-12,135-1,517-9,407-10,924-1,571-10,064-11,636-2,027-10,244-12,271
- National Bank-407-975-1,381-798-188-986-429-328-757-432-79-511-324-592-916
- Commercial banks-561-8,191-8,752-1,315-9,834-11,149-1,088-9,079-10,167-1,139-9,985-11,124-1,703-9,652-11,355
- Development banks000000000000000
Net unclassified assets3,898-4,465-5665,551-6,479-9284,872-6,845-1,9736,175-9,116-2,9416,976-9,580-2,604
Liabilities to private sector3,2671193,3863,874783,9523,961844,0444,757764,8324,962795,041
Money3,25903,2593,83703,8373,95903,9594,63804,6384,56404,564
- Currency3,24503,2453,82703,8273,95003,9504,63104,6314,55104,551
- Demand deposits140141001090970713013
Quasi-money81191273778115284861197619439879476
II. Banco de la Nacion
End-of-period exchange rate (S/. per US$)2.602.723.133.483.52
Net international reserves3,6633,6636696696816814364369292
Foreign assets3,7503,750748748774774534534n.a.n.a.
Foreign liabilities8888797993939999n.a.n.a.
Medium and long-term foreign assets01071070591591063363309898n.a.n.a.n.a.
Net domestic assets294-3,670-3,376434-1,163-729514-838-324546-36518161942662
Nonfinancial public sector-765-2,441-3,206-8721,212340-1831,6031,419-2162,8332,617-4593,1072,648
- Central Goverment-743-2,463-3,205-8861,219334-5441,529985-3683,7403,372n.a.n.a.n.a.
- Rest of the nonfinancial public sector-2322-114-8636173434152-907-755n.a.n.a.n.a.
Private sector2412915335110145321251584213017264131195
Banking system5599751,5349921891,1816123259374171805974606611,121
- Central Reserve Bank4079751,38179818898642932875743279511324592916
- Commercial banks153-31501941196183-3180-151018613670205
- Development banks033000000000000
Capital and reserve-1,844-436-2,281-2,383-364-2,747-1,243-2,105-3,348-1,106-2,473-3,578n.a.n.a.n.a.
Net unclassified assets2,321-1,8964242,661-2,3093521,296-7855101,408-1,035373554-3,856-3,302
Liabilities to private sector2949939343497531514476990546169715619135754
Money1860186239023926302632560256n.a.n.a.n.a.
Quasi-money1089920719597292251476727291169459n.a.n.a.n.a.
III. Commercial Banks
End-of-period exchange rate (S/. per USS)2.602.723.133.483.52
Net international reserves-2,756-2,756-6,544-6,544-7,137-7,137-2,998-2,998-2,006-2,006
Foreign assets1,1791,1791,5721,5721,9301,9303,4433,443n.a.n.a.
Foreign liabilities3,9353,9358,1178,1179,0689,0686,4416,441n.a.n.a.
Medium and long-term foreign assets-55-348-403-44-813-857-64-555-619-53-633-686n.a.n.a.n.a.
Net domestic assets6,77623,92130,6978,65731,27539,9328,20435,40843,6128,83935,44844,2868,78334,81943,602
Nonfinancial public sector-1,406-2,183-3,589-2,538-3,462-6,000-3,764-3,565-7,329-4,195-4,856-9,051-4,039-3,694-7,733
- Central Goverment-500-179-678-1,116-295-1,411-1,733-137-1,870-2,142-69-2,211n.a.n.a.n.a.
- Rest of the nonfinancial public sector-906-2,005-2,910-1,423-3,167-4,589-2,031-3,428-5,459-2,053-4,788-6,841n.a.n.a.n.a.
Private sector7,24521,08328,3288,44629,22137,6679,02536,65345,6778,69640,19148,8878,80939,36148,170
Banking system4088,1948,6021,1219,83310,9549059,0819,9861,1519,88511,0361,5659,58311,148
- Central Reserve Bank5618,1918,7521,3159,83411,1491,0889,07810,1661,1379,98511,1221,7019,65311,354
- National banks-1533-150-194-1-196-1833-18014-101-87-136-70-205
- Development banks000000000000000
Capital and reserve-4,971-1,263-6,233-6,575-1,724-8,299-8,009-2,952-10,961-10,161-5,118-15,279n.a.n.a.n.a.
Net unclassified assets5,499-1,9113,5888,203-2,5935,61010,048-3,8096,23913,347-4,6548,6942,449-10,431-7,983
Liabilities to private sector6,72120,81727,5388,61323,91832,5308,14027,71635,8568,78531,81640,6018,78332,81341,596
Money2,07102,0712,50702,5072,38102,3812,55302,553n.a.n.a.n.a.
Quasi-money4,65020,81725,4676,10523,91830,0235,76027,71633,4756,23331,81638,049n.a.n.a.n.a.
IV. Development Banks
End-of-period exchange rate (S/. per US$)2.602.723.133.483.52
Net international reserves-71-71-75-75000000
Foreign assets30303131000000
Foreign liabilities101101106106000000
Medium and long-term foreign assets0-80-800-84-840-29-29000000
Net domestic assets3517621135184219295887211031211031
Nonfinancial public sector0808108484000000000
- Central Goverment-16059-16362000000000
- Rest of the nonfinancial public sector1202112122000000000
Private sector276526803276551827276634910103706809103710813
Banking system1-4-31-4-3000000000
- Central Reserve Bank000000000000000
- National banks000000000000000
- Commercial banks0-4-30-4-4000000000
Capital and reserve-226-531-757-226-555-781-226-639-865-226-713-939-226-717-943
Net unclassified assets-1710487-1710992-2163421441716114417161
Liabilities to private sector352459352560292857211031211031
Money707707210212102121021
Quasi-money282452282553828370101001010
V. Consolidated Banking System
End-of-period exchange rate (S/. per US$)2.602.723.133.483.52
Net international reserves22,37622,37621,25021,25021,68821,68826,07626,07626,40426,404
Medium and long-term foreign assets-55188132-44273229-71829758-81422340n.a.n.a.n.a.
Net domestic assets10,372-1,5048,86713,0002,59515,59512,7155,78718,50214,1905,57319,76314,3856,63221,017
Nonfinancial public sector-1,834-12,845-14,678-2,973-13,367-16,340-3,334-14,552-17,886-4,230-12,362-16,592-4,477-10,049-14,526
- Central Goverment-903-10,805-11,708-1,545-7,002-8,547-1,663-5,365-7,028-2,104-253-2,357n.a.n.a.n.a.
- Rest of the nonfmancial public sector-931-2,039-2,970-1,428-6,365-7,793-1,671-9,187-10,858-2,126-12,109-14,235n.a.n.a.n.a.
Private sector7,54521,73929,2838,75829,88238,6399,33337,41146,7458,84141,02749,8688,97640,20149,178
Interfinancial claims0-100-4-30-1-1-30-3-20-1
Capital and reserves-7,292-2,230-9,521-9,582-2,643-12,225-9,938-5,696-15,634-11,923-8,304-20,227n.a.n.a.n.a.
Net unclassified assets11,952-8,1683,78416,797-11,2735,52416,654-11,3765,27921,505-14,7886,7179,888-23,521-13,633
Liabilities to private sector10,31621,06031,37612,95524,11837,07312,64428,30340,94714,10932,07146,17914,38533,03647,421
Money5,52305,5236,59006,5906,62306,6237,46707,467n.a.n.a.n.a.
- Currency3,24503,2453,82703,8273,95003,9504,63104,6314,55104,551
- Demand deposits2,27802,2782,76302,7632,67302,6732,83702,837n.a.n.a.n.a.
Quasi-money4,79421,06025,8536,36524,11830,4836,02128,30334,3246,64232,07138,712n.a.33,036n.a.
- Time deposits1,86001,8602,65202,6522,26502,2652,75902,759n.a.n.a.n.a.
- Savings deposits2,38202,3822,86402,8642,82202,8222,79502,795n.a.n.a.n.a.
- Other55221,06021,61284924,11824,96793528,30329,2381,08832,07133,158n.a.33,036n.a.
Source: Central Reserve Bank of Peru.
Source: Central Reserve Bank of Peru.
Table 36.Peru: Banking System Credit by Type of Bank and Currency of Denomination(End-of-period stocks in millions of nuevos soles, and percent of total)
19961997199819992000
S/.In percentS/.In percentS/.In percentS/.In percentS/.In percent
Total credit outstanding14,605100.022,299100.028,858100.033,276100.034,651100.0
Public sector (net)-14,678-100.5-16,340-73.3-17,886-62.0-16,592-49.9-14,526-41.9
In national currency-1,834-12.6-2,97343.3-3,334-11.6-4,230-12.7-4,477-12.9
In foreign currency 1/-12,845-87.9-13,367-59.9-14,552-50.4-12,362-37.1-10,049-29.0
Private sector29,2832.038,639173.346,745162.049,868149.949,178141.9
In national currency7,54551.78,75839.39,33332.38,84126.68,97625.9
In foreign currency 1/21,739148.829,882134.037,411129.641,027123.340,201116.0
By type of bank29,283100.038,639100.046,745100.049,868100.049,178100.0
Central Reserve Bank00.000.000.000.000.0
National Bank1530.51450.41580.31720.31950.4
Commercial banks28,32896.737,66797.545,67797.748,88798.048,17098.0
Development banks8032.78272.19101.98091.68131.7
Memorandum items
Liabilities to private sector31,376100.037,073100.040,947100.046,179100.047,421100.0
Money5,52317.66,59017.86,62316.27,46716.2n.a.
Quasi-money25,85382.430,48382.234,32483.838,71283.8n.a.
Source: Central Reserve Bank of Peru.

Flows in foreign currency are valued at end-of-period exchange rates.

Source: Central Reserve Bank of Peru.

Flows in foreign currency are valued at end-of-period exchange rates.

Table 37.Peru: Net International Reserves of the Central Reserve Bank(End-of-period stock in millions of U.S. dollars)
19961997199819992000
Net international reserves8,28510,0008,9358,1598,022
Foreign assets9,30810,9089,6228,6978,433
Gold 1/368368368368368
Foreign banks7,5297,9405,5575,3245,163
Invesments in Eurobonds1,3412,5433,6472,9282,858
Reciprocal credit agreements7057386025
Other assets10121720
Foreign liabilities1,023908688538411
Reciprocal credit agreements686137524
International organizations955847650533387
Liabilities to IMF955847650528377
Use of Fund credit955847650528377
Charges arrears00000
BID’s deposits000510
Foreign banks00000
Other foreign financial institutions00000
Interest due to foreign institutions00000
BID’S Deposits00000
Others00000
Memorandum items:
Reserve deposits in foreign currency3,5953,7133,0652,9643,013
Source: Central Reserve Bank of Peru.

Valued at US$329.8 per ounce.

Source: Central Reserve Bank of Peru.

Valued at US$329.8 per ounce.

Table 38.Peru: Balance of Payments(In millions of U.S. dollars)
19961997199819992000
Current account-3,429-3,057-3,638-1,817-1,631
Merchandise trade-1,988-1,721-2,466-616-355
Exports5,8986,8325,7576,1137,016
Imports-7,886-8,553-8,222-6,729-7,372
Consumer goods-1,847-1,910-1,884-1,438-1,452
Intermediate goods-3,237-3,437-3,386-3,015-3,703
Capital goods-2,417-2,816-2,602-2,140-2,091
Other-385-390-350-136-126
Services, income, and current transfers (net)-1,442-1,338-1,169-1,201-1,270
Services-685-767-593-600-611
Investment income-1,639-1,472-1,488-1,545-1,637
Current transfers883901912944978
Capital and financial account4,4394,9622,2671,0251,450
Public sector-434-55-57393279
Disbursements4649857901,2371,528
Amortization-878-837-859-961-1,116
Bonds (net)-20-20313117-133
Privatization receipts1,68814560219229
Foreign direct investment (FDI)1,5541,5531,8201,751448
Other private capital1,6313,319444-1,338494
Medium- and long-term loans657449423388741
Portfolio investment197317-343-316-281
Short-term flows to the financial sector-2372,684-99-1,424-211
Other short-term flows (incl. errors and omissions)1,014-13046414245
Financing-1,010-1,9051,371792181
Change in central bank reserves (increase-)-1,932-1,7331,006775189
Exceptional financing922-17236518-8
Total external debt (end of period)33,80528,64229,47727,96627,314
Medium- and long-term28,28622,17123,25623,41423,594
Public sector (excluding central bank)25,19618,78719,56219,50019,180
Central bank1,004869756589348
Private sector2,0862,5152,9373,3254,066
Short term5,5196,4726,2224,5523,720
Total outstanding arrears1/11,574187166155104
Sources: Central Reserve Bank of Peru; Ministry of Economy and Finance; and Fund staff estimates and projections.

Includes accumulation of arrears to private and bilateral creditors pending the conclusion of debt negotiations, and payments and rescheduling of arrears. In 1997, stock of arrears includes principal only.

Sources: Central Reserve Bank of Peru; Ministry of Economy and Finance; and Fund staff estimates and projections.

Includes accumulation of arrears to private and bilateral creditors pending the conclusion of debt negotiations, and payments and rescheduling of arrears. In 1997, stock of arrears includes principal only.

Table 39.Peru: Trade Volume and Terms of Trade
19961997199819992000
(Year 1994 = 100)
Exports
Value128.3148.6125.2132.9152.6
Volume109.1123.5127.3144.9159.4
Unit value117.6120.398.491.795.7
Imports
Value140.9152.8146.9120.3131.7
Volume122.9137.5139.3114.2119.1
Unit value114.6111.1105.5105.3110.6
Terms of trade102.6108.393.387.186.5
(Percentage change)
Export volume5.113.23.113.910.1
Import volume-2.411.91.3-18.14.3
Terms of trade-3.75.6-13.8-6.6-0.6
Sources: Central Reserve Bank of Peru; and Fund staff estimates.
Sources: Central Reserve Bank of Peru; and Fund staff estimates.
Table 40.Peru: Exports f.o.b. by Group of Products
19961997199819992000
(In millions of U.S. dollars)
Traditional products4,213.34,704.53,711.94,142.84,815.3
Minerals2,654.42,730.52,746.73,008.03,192.8
Petroleum and derivatives353.0376.4232.5251.3405.8
Agricultural products297.1471.7322.7281.9240.3
Fishing908.81,125.9409.9601.5976.4
Nontraditional products1,589.72,046.51,968.01,874.22,042.1
Agriculture and livestock323.3339.9302.2405.4425.3
Textiles454.5572.6533.6574.9670.0
Fishing products212.0277.5224.9190.2196.6
Metal products48.756.8105.075.187.7
Chemicals167.1206.2196.3194.4206.3
Steel and metallurgical products141.2233.9222.4197.9212.9
Nonmetal minerals37.351.451.651.346.2
Other205.6308.2332.2184.9197.1
Other95.080.778.096.7158.8
Fishing concessions20.67.20.031.397.8
Other74.473.578.065.461.0
Total exports, f.o.b.5,898.06,831.75,756.86,112.77,016.2
(In percent of total)
Traditional products71.468.964.567.868.6
Minerals45.040.047.749.245.5
Petroleum and derivatives6.05.54.04.15.8
Agricultural products5.06.95.64.63.4
Fishing15.416.57.19.813.9
Nontraditional products27.030.034.230.729.1
Agriculture and livestock5.55.05.26.66.1
Textiles7.78.49.39.49.5
Fishing products3.64.13.93.12.8
Metal products0.80.81.81.21.3
Chemicals2.83.03.43.22.9
Steel and metallurgical products2.43.43.93.23.0
Nonmetal minerals0.60.80.90.80.7
Other3.54.55.83.02.8
Other1.61.21.41.62.3
Fishing concessions0.30.10.00.51.4
Other1.31.11.41.10.9
Total exports, f.o.b.100100100100100
Source: Central Reserve Bank of Peru.
Source: Central Reserve Bank of Peru.
Table 41.Peru: Traditional Exports f.o.b. by Commodity(In millions of U.S. dollars)
19961997199819992000
Traditional products4,213.34,704.53,711.94,142.84,815.3
Fishing908.81,125.9409.9600.5976.4
Fishmeal834.91,030.9392.0532.5889.6
Volume (thousands mt.)1,609.81,926.3666.21,474.42,374.0
Unit value (US$/mt)518.6535.2588.4361.2374.7
Fish oil73.995.018.068.186.9
Volume (thousands mt)221.0242.534.6258.7495.0
Unit value (US$/mt)334.3391.9518.8263.1175.5
Agricultural products297.1471.7322.7281.9240.3
Cotton30.232.14.01.65.0
Volume (thousands mt)11.613.61.60.92.7
Unit value (USS/mt)2,613.82,357.52,459.91,823.31,865.8
Sugar37.234.426.89.47.1
Volume (thousands mt)82.579.460.121.320.9
Unit value (USS/mt)450.7433.3446.1442.5340.4
Coffee223.1396.9286.9267.7224.3
Volume (thousands mt)100.398.0115.9145.7138.1
Unit value (USS/mt)2,224.44,048.82,474.91,837.51,624.4
Others6.68.35.03.23.9
Minerals2,654.42,730.52,746.73,008.03,192.8
Copper 1/1,052.21,096.3778.8776.3900.8
Volume (thousands mt)475.4501.2486.4521.1512.3
Unit value (USS/mt)2,213.52,187.31,601.31,489.91,758.3
Tin108.6133.2118.6132.8174.5
Volume (thousands mt)20.428.324.928.036.3
Unit value (USS/mt)5,316.74,714.54,761.04,749.04,810.5
Iron83.976.596.466.772.1
Volume (millions mt)4.13.84.63.83.9
Unit value (US$/mt)20.520.121.017.418.4
Gold579.3500.1928.51,192.51,174.7
Volume (thousands troy oz.)1,478.21,487.63,150.14,228.14,151.1
Unit value (US$/oz.)391.9336.2294.7282.0283.0
Silver (refined)119.5104.8130.6169.3181.5
Volume (millions troy oz.)22.922.125.532.435.8
Unit value (US$/oz.)5.24.75.15.25.1
Lead 1/274.3237.0208.7177.1176.6
Volume (thousands mt)200.7211.6