Peru, for the past decade, has been one of the world’s growth economies, and has attracted a great deal of foreign and private investment. This economic growth has been based in the main on the two major industries of Peru, fishing and mining.

Mining industry

The mining industry has proved to be vital to Peru’s recent economic growth, although the mineral-rich Andes have been mined for thousands of years. Currently Peru is a global leader in the production of gold, copper, zinc and lead, all of which are exported in large amounts. Recent estimates suggest that Peru has many decades worth of metallic resources available for extraction.

The extraction of gold, in particular, has played a vital role, and Peru is home to some of the most profitable mines anywhere in the world.

The price of gold, and other metals, does fluctuate, and there has been a recent downturn in prices being paid for metals, most notably gold. These downturns, of course, impact on the amount of money that Peru subsequently receives from the mining industry.

Fishing industry

The other mainstay of Peru’s economy is the fishing industry. Perhaps surprisingly, the South American country produces 10 percent of the global quantity of fish caught. There are ideal fishing conditions off of the coast of Peru, although the bulk of the fish caught are anchovies. These anchovies are used in fishmeal, which is then exported to be used as fertiliser or animal feed.

The fishing industry was, until a few decades ago, owned by the government, but this stake has now been sold off, and the fishing industry is now in private hands.

Peru’s fishing industry is subject to nature’s whims, and the industry can be greatly impacted when El Nino disrupts the cold waters off of the country.

Other major industries of Peru

Outside of the two major industries, other industries do play a part in the country’s overall economy. Arguably the most significant of these other industries is the tourism industry. Peru is home to Machu Picchu, the famed Inca city, to which many tourists trek. Additionally in the east of the country is a section of the Amazon rainforest and, as a result, many eco-tourists also visit the country. Peru is faced with the issue of encouraging tourism without destroying the very elements of the country that tourists visit, and the pressures on archaeological sites, as well as the rainforest, has led to a certain amount of destruction. Over the past two decades tourism has proven to be a rapid growth industry.

Also growing is the manufacturing industry, and now represents about 20 percent of the nation’s GDP. Traditionally raw materials were simply exported to other nations, today, raw materials are being processed to add value. This is most visible in the textile industry, where garments are being made for export, especially to the United States and Europe.  

A richness in natural resources has helped with Peru’s industrial growth, but the influx of foreign investment in mines, fishing fleets, and manufacturing factories, has also greatly helped with overall economic growth.