BUSINESS CENTER

Peru Profile



Peru occupies the central section of the South American Pacific coast and has borders with Ecuador and Colombia to the north, Brazil and Bolivia to the east and Chile to the south. Its Pacific coastline extends 1,915 miles (3,080 kilometers) and its area is roughly 500,000 square miles (1,285,215 square kilometers), slightly larger than Colombia and about one-sixth the size of the United States.

Lima and its surrounding neighborhoods have a population of around 10 million.

Political system
Peru is a republic and its central government is established in Lima. The Constitution provides for an executive branch led by the president, who is the Chief of State and personifies the Nation; legislative power is vested in Congress, which consists of a single house; the judicial branch is empowered to administer justice through its hierarchical bodies in accordance with the Constitution and the law.

Population
Peru’s present population is approximately 30 million.

Language
The official language is Spanish and the native dialects are Quechua and Aimara. However, a great number of professionals and executives speak English.

Religion
Most Peruvians are Catholic; however, the constitution establishes freedom of religious practice.

Education
Elementary and high school education is mandatory and is free in the state schools. All schools, whether of elementary, high, national, or foreign education, are under the general supervision of the Ministry of Education. Currently, the level of illiteracy in Peru is rapidly decreasing.

Natural resources
Perhaps the main characteristic of Peru is its wealth of natural resources, most of which are still not fully exploited. The main resources are the following:
  1. Oil and gas:
    The international position of Peru in oil production has been unfavorable because of the absence of development in the past. There are large proven reserves of natural gas, which are beginning to be exploited.

  2. Mining:
    Mining is one of the most important activities in the Peruvian economy. The main minerals exported are cooper, gold, iron, silver, zinc and lead, among others. Currently, all of them are strongly requested for industrial procedures related to high technology.

  3. Agriculture:
    The principal products presently being exported are asparagus, broccoli, coffee, indian mangos, among others.

Major industries
The industries with the most promising future in Peru are those linked to the transformation of the country’s natural resources: textile, canned fish and fishmeal, gold and silver jewelry, refined minerals, etc.

There are also important companies in the pharmaceutical, food, drink, and chemical sectors, among others. The banking and insurance sectors are modern and well able to carry any future growth in the market.

Visitors’ visas
Before traveling to Peru, visitors should check with their travel agents as to whether visitors’ visas are required. They are generally not required for visitors from most countries. However, foreign nationals with tourist visas may not engage in business activities. A tourist visa may be granted for as long as three months.

Currency
Peruvian currency is the Nuevo Sol. There are no exchange controls. The bank exchange rate approximates the free market rate.

International time
Lima, the capital city, is directly south of New York City. The time is uniform in Peru and it is the same as U.S. Eastern Standard Time. It is thus, five hours behind Greenwich Mean Time.

Labor/management relations
In general terms, working conditions are favorable and there is complete availability of semiskilled, skilled and managerial personnel. Social security costs and fringe benefits constitute a very sizable part of the cost of doing business in Peru.
CONTACT
T.: (511) 717 6901

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