Peru: Political crisis drags down consumer confidence in March
April 3, 2018
The consumer confidence indicator published by GfK dropped further in March, coming in at 80. The result is down from 84 in the prior month and marks the fifth consecutive decline in consumer confidence in as many months. The indicator thus moved further below the crucial 100-point threshold that indicates pessimism among Peruvian consumers, where it has been since November 2017. It has to be noted that the survey reflects consumers’ perceptions recorded before the new government led by President Martín Vizcarra took office on 23 March. Consumers grew more pessimistic as they broadly believed that economic growth was weakening, and that the former government wasn’t taking sufficient measures to revive the economy.
Respondents largely perceived the economy to be growing, but at a softer pace than before. Moreover, the number of respondents who believed growth has stalled increased considerably from February. Also, fewer households expected economic growth to pick up pace. Additionally, the number of households who expected that their personal economic situations would improve in the next 12 months declined further. Furthermore, the number of households that expressed discontent with the government’s actions continued to grow, and now represents almost 70% of respondents.
Peru Private Consumption Forecast
Panelists surveyed for this month’s LatinFocus report expect private consumption to expand 3.3% in 2018, which is unchanged from last month’s estimate. In 2019, panelists expect private consumption to grow 3.0%.