Peru

After having grown by 7.2% in 1997, the Peruvian economy expanded by just 0.7% in 1998. This poor result was due to the havoc wreaked on fishing and agriculture by El Nino and a fall in metal prices resulting from the Asian crisis. Although factors were more or less expected at the beginning of the year, their effect was compounded by the unilateral debt moratorium declared by Russia, which led to reduced capital flows to emerging countries, and the Brazilian crisis, which pushed up the perceived risk level of the region as a whole. On the external front, the Government faced this situation by combining devaluation and the shedding of international reserves; even so, the current account deficit on the balance of payments widened to 6% of GDP.

Sustainable Development Goals:

Decent Work and Economic Growth

Industry, Innovation and Infrastructure

Peace, Justice and Strong Institutions