Peru has been one of the region’s fastest-growing economies, with an average growth rate of 5.9% in a context of low inflation (averaging 2.9%), over the past decade. “A favorable external environment, prudent macroeconomic policies and structural reforms in different areas combined to create a scenario of high growth and low inflation.” The economic policies of the 1970s in Peru were based on the substitution of imports and from 1985 to 1990 the hyperinflation in Peru reached a cumulative total of 2,200,200%, in the middle of the terrorism years in the countryside. Alberto Fujimori came to power in 1990 implementing drastic measures, some which reduced inflation, and ended with dissolution of the Congress by Fujimori. Since 1990, the Peruvian economy had undergone free market reforms, with privatization in the mining, electricity, and telecommunications industries. With the new century and the stabilization of the political situation, the economy started to increased investments, expanding production and exports of raw materials. As a result, the strong growth in employment and income has reduced poverty rates, from 55.6% to 21.8% between 2005 and 2015 and extreme poverty declined from 15.8% to 4.1%, during the same period.
