Peru: Economic activity contracts for first time in over a decade in March
In March, economic activity slumped 16.3% year-on-year, contrasting February’s 3.8% expansion and marking the first contraction in activity since July 2009. As such, activity shrank 3.4% across the first quarter of the year as preventative measures put in place to stem the spread of coronavirus significantly impaired the economy.
In terms of industries, March’s downfall was spearheaded by drastically reduced output in the mining, manufacturing and construction sectors. Furthermore, activity in the hospitality sector sank heavily as state of emergency measures forced the widespread closure of businesses.
Meanwhile, annual average growth in economic activity dropped to 0.8% in March from 2.4% in February, hitting the lowest level since records began in December 2008.