Peru: Economic activity continues losing momentum
January 20, 2012
In November, economic activity grew 5.0% over the same month the year before. The figure was virtually unchanged from the 5.1% expansion observed in October, and also in line with market expectations. The reading represented the weakest expansion since January 2010 and was mainly driven by deteriorations in the manufacturing and mining sectors. On a monthly basis, economic activity expanded a seasonally adjusted 0.33% over the previous months, which was above the 0.12% increase observed in October. Finally, the trend continues to point to a moderation in economic activity, with annual average growth falling from 7.6% in October to 7.1% in November, thus marking the slowest pace since August 2010. In its December inflation report, the Central Bank estimates the economy to have grown 6.8% in 2011, which is up from its previous 6.3% estimate. For 2012, the Bank sees the economy expanding 5.5%, before accelerating to 6.3% in 2013.
Author: Ricardo Aceves, Senior Economist