ctricity, and telecommunications industries. An
austerity program implemented shortly after the FUJIMORI government
took office in July 1990 contributed to a short-lived contraction of
economic activity, but the slide came to a halt late that year, and
in 1991 output rose 2.4%. By working with the IMF and World Bank on
new financial conditions and arrangements, the government succeeded
in ending its arrears by March 1993. In 1992, GDP fell by 2.8%, in
part because a warmer-than-usual El Nino current resulted in a 30%
drop in the fish catch, but the economy rebounded as strong foreign
investment helped push growth to 7% in 1993, about 13% in 1994, and
6.8% in 1995. Growth slowed to 2.8% in 1996 as the government
adopted tight fiscal and monetary policy to reduce the current
account deficit and meet its IMF targets. Growth then rebounded to
7.3% in 1997 even as inflation fell to its lowest level in 23 years.
Capital inflows surged to record levels in early 1997 and have
remained strong. In 1998, El Nino's impact on agriculture, the
financial crisis in Asia, and instability in Brazilian markets
undercut growth. While Lima publicly projects a rebound to 5% in
1999, private sector analysts believe this figure is overly
optimistic.

GDP: purchasing power parity--$111.8 billion (1998 est.)

GDP--real growth rate: 1.8% (1998 est.)

GDP--per capita: purchasing power parity?$4,300 (1998 est.)

GDP--composition by sector:
agriculture: 7%
industry: 37%
services: 56% (1997)

Population below poverty line: 54% (1991 est.)

Household income or consumption by percentage share:
lowest 10%: 1.9%
highest 10%: 34.3% (1994)

Inflation rate (consumer prices): 6.7% (1997 est.)

Labor force: 7.6 million (1996 est.)

Labor force--by occupation: agriculture, mining and quarrying,
manufacturing, construction, transport, services

Unemployment rate: 8.2%; extensive underemployment (1996)

Budget:
revenues: $8.5 billion
expenditures: $9.3 billion, including capital expenditures of $2
billion (1996 est.)

Industries: mining of metals, petroleum, fishing, textiles,
clothing, food processing, cement, auto assembly, steel,
shipbuilding, metal fabrication

Industrial production growth rate: 1.2% (1996)

Electricity--production: 16.211 billion kWh (1996)

Electricity--production by source:
fossil fuel: 19.25%
hydro: 80.75%
nuclear: 0%
other: 0% (1996)

Electr