8 julio, 2024

The 9 Most Important Economic Activities of Peru

The economic activities of Peru They are all the processes marked by the economy through which the Republic of Peru obtains the majority of the income that allows its citizens to subsist.

Peru, officially the Republic of Peru, is a country located in the west of South America, being completely bathed by the coasts of the Pacific Ocean. In addition, it limits to the north with Colombia and Ecuador, to the east with Brazil and to the south with Chile and Bolivia.

Peru is a decentralized and presidential unitary republic, made up of twenty-four departments and the Constitutional Province of El Callao.

Its geography is extremely varied, being a reservoir of biodiversity in the entire part that occupies the Amazon jungle and also in the Andes mountain range, which passes through and divides its territory in two.

The desert is also present in its capital, Lima, and continues to the south. Peru is a developing country, whose main sources of economic income are strongly tied to the peculiarities of its geography.

After experiencing one of the strongest economic crises in Latin America in the last two decades of the 20th century, the Peruvian economy is experiencing rapid and determined growth.

Its Human Development Index has already reached a high level, as well as its low inflation rates show that the stability of the Peruvian economy is not in question and is attractive to thousands of foreign investors.

Since Peru is a country that mainly produces raw materials, it has developed a series of Free Trade Agreements with different countries.

These include Canada, Chile, China, South Korea, Costa Rica, the United States, Japan, Mexico, Panama, Singapore, Thailand and Venezuela, as well as the European Free Trade Association, the Andean Community and the European Union.

[toc]

Main activities of the Peruvian economy

Agriculture

Throughout its entire history, since the pre-Columbian era of the Inca Empire, agriculture has been the engine of the Peruvian economy.

For more than a millennium, products such as potatoes and corn have been collected and consumed in the area.

Rice, sweet potato, quinoa, maca, cocoa and coffee are also widely harvested, as well as products that only grow in cold areas such as wheat, apples and pears.

The place where agriculture is most developed and technified is in the coastal areas, because the terrain is flatter and suitable for food harvesting, while in the Amazon and the Andean region agriculture is more extensive.

Mining

Peru is the country with the most developed mining industry in Latin America. Multiple foreign companies operate in this country, which has become the largest producer of gold in the region, as well as zinc, lead and tin or elements such as silver and copper.

Mining takes place especially in the southern part of the country, although the largest gold mine in the region is in the north.

This is the Yanacocha Mine, located near the city of Cajamarca in the middle of the Andean mountain range, at more than 3,500 meters above sea level.

Fishing

The extensive Peruvian coast has allowed the development of a medium-level fishing industry.

Marine biodiversity has been widely recognized and is also reflected in fishing, as fish such as anchovy, tuna, sea bass, silverside, sea bass, grouper, and grouper, among others, are marketed.

This economic activity can be carried out in two main ways. The first one is of a minor type, being able to be understood as artisanal fishing.

The other is industrial fishing, which is carried out with large boats and modern mechanisms for catching fish, as well as machinery for its subsequent processing.

Cattle raising

There are favorable conditions in Peru for a livestock environment, which consists of raising animals to be used later as food.

To understand this economic activity, it is necessary to know that the region where livestock farming has developed the most is in the Andes, because here are the large pastures from which these animals can be fed.

However, the Amazon region is the most propitious for this activity, because it has non-floodable soils.

Industry

Although Peru is a country that mainly produces raw materials, the industrial part has developed widely, especially in recent decades.

This country is already being able to process a large part of the raw material it produces, which implies an advance in its financial autonomy.

The food processing industry and the steel industry, located in the Arequipa and Ica regions, are of special importance in national economic development.

The paper industry has also had strong growth, due to the large amount of cane used for this purpose, and the fur industry, which processes llama and alpaca fur. Finally, the naval industry, located in Callao, also stands out.

Tourism

It is one of the main economic activities in Peru, being surpassed by mining. The pre-Columbian history of Peru left great architectural constructions that are visited annually by millions of tourists.

Sites like Machu Picchu in the Sacred Valley of the Incas or the pre-Columbian city of Chan Chan are world renowned for their unique characteristics and their conservation.

Also, the city of Lima has a great tourist attraction, without discarding the Amazon areas such as the city of Iquitos.

Transportation

For any country to be able to articulate its different realities, it is necessary to create a transport system that covers a large part of its territory.

Currently, Peru has a road network of 137 thousand kilometers of roads. This part has grown vertiginously in recent years, managing to connect all the Peruvian departments, even the remote Amazonas with its capital Iquitos, although most of the traffic to this city is carried out by river or air.

The railways in the country are very few and are mostly used for cargo. However, the trend is on the rise because in 2009 the first line of the Lima Metro was inaugurated.

An already consolidated sector is the air sector, with 11 airports with international category. Finally, the long coastline along the Pacific Ocean, Lake Titicaca and rivers as large as the Amazon make Peru a country with developed water transport.

Petroleum

Peru has several oil fields. Among these stands out the one located in the northwestern area of ​​the Peruvian coast, in the department of Piura.

Within the framework of actions for the efficient exploitation of this resource, Peru has the Norperuano oil pipeline, whose main function is to allow the transfer of oil obtained in the jungle to the coast.

Natural gas deposits are also important for this South American country. At the end of the 20th century, a large natural gas deposit was discovered in Cuzco, which has been exploited.

International Trade

The products that Peru exports the most are minerals, food, agricultural products and precious metals.

In relation to imports, chemical products, machinery and transport equipment stand out especially.

The United States and China are the main destinations for exports and also the countries from which more imports are made in Peru.

Floriculture

Although the potential in this sector has exploded from the 2010s onwards, its exports have grown at a rapid pace due to the quality of its raw material and its mega-diversity distributed throughout the country.

The main export niches are the United States, the Netherlands, Canada, the United Kingdom, France or Panama, among others.

Within this activity, the ornamentation with flowers such as the orchid, the rose, the carnation, the viznaga or the bridal veil (Gypsophila paniculata).

Wood industry

Peru, having extensive areas of the Amazon (56% of the nation is covered by tropical forests) has an important industry dedicated to forestry production.

This sector generates wealth, employment and foreign exchange due to the export of wood products, but it is also causing a serious deforestation problem that affects the biodiversity of natural areas.

Pharmaceutical industry

This industry is growing at a fast pace due to digital transformation and e-commerce. In Peru there are more than 200 laboratories and companies dedicated to medicines and vaccines that generate income of more than 4 billion dollars.

Steel industry

The steel industry in Peru is of vital importance for multiple sectors of the nation such as construction or mining. The work of steel in the country has allowed the elaboration and distribution of products such as mill balls, coils, galvanized plates, mining tools, metallic carpentry and construction bars.

economic activities of the coast

Agriculture is one of the most developed activities on the Peruvian coasts.

The region’s average temperature is 19 °C and the presence of rainfall between December and April allows cotton, asparagus, mango, olives, paprika, oregano and artichoke to be harvested in its soils, among other products.

In the economy of the coastal zone, artisanal fishing also stands out, both in seas and in rivers. The river shrimp is one of the most fished specimens in this region.

Regarding livestock, different types of cattle are raised on the Peruvian coast: pigs, cattle and poultry. Items derived from livestock are often used for industrial purposes.

Economic activities of the sierra

In the Peruvian sierra there are extensive cattle raising, in which large tracts of land are allocated; and the intensive one, in which the animals are in controlled conditions of light and temperature.

The products generated from extensive livestock are intended for local consumption. Instead, the result of intensive farming has industrial purposes.

On the other hand, agriculture is an activity of great importance given that the mountains cover more than 30% of the surface of Peru. Vegetables, cereals, legumes and other foods are derived from this activity.

As for fishing, Lake Titicaca is where this activity takes place the most. The boga and suche species are among the most captured in the area.

Economic activities of the forest

Livestock in the Peruvian jungle is represented by a particular specimen: it is the Amazon, which is a specimen that arose from the mixture of the Brown Swiss bull with the Zebu.

The high jungle offers better possibilities for cattle ranching than the low jungle, which tends to suffer from flooding.

Agriculture is also relevant, given that the jungle covers 60% of the Peruvian territory. Coffee, mahogany, cedar, cocoa and other trees are harvested in the jungle of Peru.

On the other hand, fishing in the Peruvian jungle is carried out especially in the Amazon River. The most fished species are the piranhas and the tucunaré; It is estimated that there are about 3000 different types of fish.

References

(May 3, 2012). Peru is…

Deja una respuesta

Tu dirección de correo electrónico no será publicada. Los campos obligatorios están marcados con *