It concentrates the manufacturing industry, has reasonably efficient infrastructure and services and has a sizeable middle class. The interior of the country is based on subsistence agriculture and is characterised by small communities isolated by poor transport and communications. Peru continues to be one of the world s poorest nations with a per capita GDP of around USD 2,500 and a markedly unequal distribution of income. Almost half the population is assessed to be living below the poverty line. Economic growth and social programs are only gradually alleviating this situation.
Copper is Peru s main export.
Other major exports include coffee, zinc, gold and clothing. Peru was a relatively late convert to economic liberalisation but after President Fujimori came to power in 1990, changes have been profound. Peru now has one of the most liberal foreign investment regimes in the world and tariffs on imports have been slashed. 90 per cent of all Peru s imports now pay a duty of 12 per cent while the remainder pays a 20 per cent tariff. Fujimori also tightened fiscal responsibility by eliminating many government subsidies, expanding the tax base and making the bureaucracy more efficient.