Peru: Economic activity decelerates more than expected in May
July 15, 2013
In May, economic activity expanded 5.0% over the same month last year, which represents a slowdown compared to the 7.7% increased witnessed in April. The slowdown slightly exceeded market expectations that had economic activity easing to 5.4%. The monthly reading reflects a deceleration in manufacturing output, construction activity as well as in commerce.
On a monthly basis, economic activity remained virtually flat and grew 0.01% in May, which was below the 0.83% increase observed in April.
As a result of the annual slowdown, the trend points downwards, with annual average growth in economic activity falling from 6.2% in April to 6.0% in May.
In its June inflation report, the Central Bank projects the economy to grow 6.1%. For 2014, the Bank sees the economy expanding 6.3%. LatinFocus Consensus Forecast panellists expect GDP to expand 6.1% this year, which is up 0.1 percentage points from last month's projection. For 2014, the panel expects the economy to increase 6.2%.
Author: Ricardo Aceves, Senior Economist