Peru: Country Evaluation
Peru is located in the west of South America, and has borders with Ecuador, Colombia, Brazil, and Chile. It is almost twice the size of Texas. Peru is the third largest country in South America, and has a wide range of natural resources. The country has three main regions which are coast, mountains and jungle (Peru Travel, 2015). Generally, May through October is the dry season; November through April is the rainy season, and there are usually more than 15 days during rainy season in Peru (Frommers, 2015).
Peru has a population of 30,444,999 people that ranks 44th in the world. The official language is Spanish and ...view middle of the document...
Peruvians are a welcoming people who take pride in offering incredible services and experiences to visitors that include traditional foods, celebrations and festivals. Peruvians are passionate about soccer, the national sport and a good excuse for family and friends to come together. Peruvians are very religious. The Catholic faith has an important place in people’s lives, coexisting peacefully with other creeds (Peru Travel, 2015).
The Peruvian economy, which is the seventh largest in Latin America, has experienced a structural change in the past three decades. Peru’s economic freedom score is 67.7, making its economy the 47th freest in the 2015 Index. Its score is 0.3 point better than last year, with improvements in freedom from corruption, labor freedom, and monetary freedom outweighing declines in business freedom, the management of government spending, and fiscal freedom (Index of Economic Freedom, 2015). The current GDP of Peru is $371.3 billion. The U.S.–Peru Free Trade Agreement has expanded trade and employment. The unemployment rate is 3.8%, and there are 25.8% of total populations below poverty line. Peru has entered into numerous other free trade agreements and is a founding member of the Pacific Alliance. The Central Bank of Peru started targeting inflation in 2002 and is now committed to keeping inflation between 1.0% and 3.0%. Panelists projected that the sol would trade at 2.85 Peruvian sol (PEN) per USD by end of 2014. By the end of 2015, panelists forecast the sol to be broadly stable and to trade at 2.86 PEN per USD. In 2017 and 2018, the sol is expected to strengthen, trading at 2.79 PEN per USD and at 2.77 PEN per USD, respectively (Focus Economics, 2015).
Peru has been politically unstable since independence was declared in 1821 and formally granted by Spain 3 years later. Since independence Peru has had 109 presidents, 18 percent of whom were democratically elected....