Peru has experienced strong and stable economic expansion in recent decades.
Peru's economy is based primarily on the export of primary sector products (raw materials and food). Mining, petroleum extraction and fishing determine the economic cycle, for (foreign) investment and as a source of foreign exchange.
But despite the economic growth figures, there is still great income inequality at various levels, with wide disparities between regions as well. Some 22% of Peruvians live below the poverty line. This is exacerbated by pervasive corruption.
About a quarter of the population is engaged in agriculture and fishing. In the inhospitable Andes Mountains, the soils are barren and water is scarce. Here live mostly subsistence farmers. Large-scale mining pollutes much of the water and soils. Young people flee the countryside en masse to seek their fortune in the cities.
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