Peru: Activity contracts at sharpest pace on record in April
June 15, 2020
Economic activity nosedived 40.5% compared to the same month a year earlier in April, which was a deterioration from March's 16.3% decrease. April's figure marked the sharpest contraction on record, as strict containment measure enacted in mid-March severely hampered business activity.
The collapse was broad-based, with virtually all sectors of the economy suffering from falling activity in May. It was spearheaded by a severe plunge in the hotels and restaurants sector, while the commerce, construction, manufacturing and mining sectors all fell heavily.
On a monthly basis, activity also fell at a quicker rate of 29.3% in April (March: -16.6% mom), and marked the worst result on record. Accordingly, the trend pointed down, with the annual average variation of activity coming in at minus 2.6% in April, down from March's plus 0.8% outturn and marking the first negative reading since records began.
Author: Stephen Vogado, Economist