price controls, national currency, fish meal, United States dollar, inti
Peru’s estimated gross domestic product (GDP) in 2000 was $53.5 billion. Although the economy remains primarily agricultural, the mining and fishing industries have become increasingly important. Peru relies primarily on the export of raw materials—chiefly minerals, farm products, and fish meal—to earn foreign exchange for importing machinery and manufactured goods. During the late 1980s, guerrilla violence, rampant inflation, chronic budget deficits, and drought combined to drive the country to the brink of fiscal insolvency. However, in 1990 the government imposed an austerity program that removed price controls and ended subsidies on many basic items and allowed the inti, the national currency at that time, to float against the United States dollar.
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