Peru's Economic Battle

As a Boom Slows, Peru Grows Uneasy

By. William Neuman

Published: August 19, 2013

The New York Times

                It feels great to have something going the way you planned, that’s how Peru felt from 2002-2012.  Peru’s economy was booming.   Peru was “full of imported items like television sets and brand-name clothing bound for the growing number of malls that serve this country’s burgeoning middle class.”  That would relate to the term supply and demand, from what we have been learning in class.  Also, the shopping malls were filled with people spending their money on items they wanted.   The people of Peru, being the consumers, are what kept the economy strong. 

                A main reason why the economy got better was because the population sky-rocketed.  During the time period of 2002-2012, the economy grew an average of 6.4% a year.  That made Peru one of the world’s star economies. 

                What we may not know about the economy is that if one countries economy downfalls it can affect other countries as well.  When China’s economy hit a slowdown it affected Peru’s economy as well.  Sadly, Peru’s economy started on a downward spiral, apparel and agricultural products plunge at the same time imports were surging.  The economy is getting to a point to where they only estimated it to grow 5%, instead of 6.4%.  That’s a far drop. 

                Growing 6.4% for an entire decade and then suddenly changes isn’t good for Peru.  Nobody likes change.  Last week, my schedule got changed and two of my classes were switched.  My schedule got changed right when I started to get comfortable with the class.  I had to change into a new class with different students and in one case, a different teacher.  Just imagine how Peru felt when their economy dropped, prices went up and not as many things were being imported. 

                Mr. Humala, after his annual Independence Day speech, told the people of Peru “the world is going through a tremendous economic crisis, and the crisis has come to Peru.”  He promised to bring the benefits of Peru’s economic growth to the millions who have been left out.  He wants to comfort the people during this time of need.  As stated in the article, the people’s trust is thin.  Many in the business community were relieved that he had not made major changes in the economic policy.  The people just want to make sure they will have economic stability.

                This article showcased many of the economic terms that we have been covering in class.  I felt as if this were a good article to present for the first blog post.