Economy of Peru to respond to the sudden massive Chilean invasion. In Bolivia's capital La Paz top Bolivian authorities were outraged, and so announced that a state of war existed, thus invoking its 1873 secret military alliance treaty with Peru. Bolivia called on Lima to activate their secret mutual defense pact, while Chile waited for Peru to respond to Bolivia's demand and see if Peru declared its neutrality or not. However, Peru's Prado president and his top officials were warned by the Peruvian military that if Peru declared its neutrality, Chile will use this statement to convince Bolivia to jointly declare war on
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