As a result of the August 15 earthquake which killed 513 people and left 80,000 homeless, Peru is expected to suffer a steep fall in its textile and agricultural exports. Sources said this was because the massive temblor cut operating capacity at textile and canning units by almost 30%.

Coupled with this, electricity supply has not been restored in 70% of towns like Pisco and Chincha and factories are running on generators to continue work. Sources from Peru's Finance Ministry said the recent earthquake has put a spanner in Government's export estimates for this year, which stood at a record $25 billion. The Government was hoping that such a figure, if it were to be achieved, would have driven the economy to a 7.2% expansion.