Peru: Economic activity drops heavily in May
July 16, 2020
Economic activity tumbled 32.8% year-on-year in May, as measures enacted to contain the spread of Covid-19 continued to impair activity during the month. However, despite being a smaller contraction than April's historic 40.5% decrease, May’s reading was still the second largest fall in activity on record.
The milder decline in May was largely driven by softer decreases in the commerce, manufacturing, hospitality and mining and hydrocarbons sectors. Meanwhile, the agricultural sector gained steam.
On a monthly basis, activity rose 8.5% in May (April: -29.3% mom), the best result on record and an indication that the worst may have passed. Meanwhile, the trend pointed down, with the annual average variation of coming in at minus 5.4%, falling from April's minus 2.6% reading.
Author: Stephen Vogado, Economist