Peru: Economic activity slows down in February
April 15, 2013
In February, economic activity expanded 5.0% over the same month last year, which marks a deceleration compared to the 6.2% increase registered in January and came in below market expectations that had activity increasing 5.7%. The monthly slowdown primarily reflected a notable deceleration in the manufacturing sector and a deterioration in mining and quarrying.
On a monthly basis, economic activity increased a seasonally adjusted 0.42% in February, which was above the 0.22% expansion observed in January.
As a result of the slower annual expansion the trend points downwards, with annual average growth in economic activity inching down from 6.3% in January to 6.2% in February.
The Ministry of Finance expects GDP to expand between 6.0% and 7.0% in the first quarter of this year. Furthermore, in its March inflation report, the Central Bank projects the economy to grow between 6.0% and 6.5% in the full year 2013. For 2014, the Bank sees the economy expanding within the same range.
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