Peru: Economic activity continues robust expansion
March 21, 2011
In January, economic activity expanded 10.0% over the same month last year, which was above the 8.9% increase observed in December and market expectations, which had seen economic activity rising to 9.0%. A month-on-month comparison confirms the strong growth suggested by the annual data, as economic activity rose 0.69% in January in seasonally adjusted terms. Strong growth in manufacturing (+14.4% year-on-year), as well as in commerce (+10.2% yoy) were the main drivers behind the January acceleration. Simultaneously, the trend continues to point to resilient growth, with the annual average variation in economic activity rising from 8.8% in December to 9.3% in January, which marked the fastest pace since December 2008. Owing to the country's strong fundamentals, the Central Bank has revised its growth estimates and now expects the economy to expand 7.0% this year, up from its previous 6.5% estimate. For 2012, the Bank anticipates the economy to grow 6.5%.
Author: Ricardo Aceves, Senior Economist