Ica, Peru Ica, Peru The city of Ica () (Quechua: "Ika") is the capital of the Ica Region in southern Peru. While the area was long inhabited by varying cultures of indigenous peoples, the Spanish "conquistador" Gerónimo Luis de Cabrera claimed its founding in 1563. As of 2005, it had an estimated population of over 219,856. The city suffered extensive damage and loss of life during the 2007 Peru earthquake. The city is located on the Ica River about 300 km to the south of Lima, along the desert coast of southern Peru. Further south along the Pan-American Highway lies the city
Economy of Peru Economy of Peru Peru is classified as "upper middle income" by the World Bank and is the 39th largest in the world by total GDP. Peru is one of the world's fastest-growing economies, with a 2012 GDP growth rate of 6.3%. It currently has a high human development index of 0.741 and per capita GDP above $12,000 by PPP. Neo-classical economists would interpret Peru's sound economic performance as a combination of: However, Post-Keynesian economists would argue that what neo-classical economics considers to be "prudent" fiscal spending is nothing more than a means to restrict government spending in order to make