Peru: Economic activity moderates in February
April 21, 2011
In February, economic activity expanded 8.5% over the same month the year before, which was below the 10.0% increase observed in January and in line with market expectations. A month-on-month comparison confirms the slowdown suggested by the annual data, as economic activity dropped a seasonally adjusted 0.88% over the previous month, which contrasted the 0.69% increase observed in January. The weaker monthly reading mainly reflected slower growth in manufacturing (January: +14.4% year-on-year; February: +11.0% yoy), as well as in construction (January: +16.2% yoy; February: +4.9% yoy). In contrast, mining contracted 3.6% in February over the same month last year. Despite the fall, the trend continues to point to resilient growth, with the annual average variation in economic activity rising from 9.3% in January to 9.5% in February, which marked the fastest pace of growth since December 2008. The Central Bank expects economic activity to grow 7.0% this year, before slowing to 6.5% in 2012.
Author: Ricardo Aceves, Senior Economist