Peru: Economic activity soars again in May
July 17, 2018
Economic activity continued to expand strongly in May, jumping 6.4% year-on-year, coming in below April’s five-year high 7.8% annual growth rate.
A strong expansion in exports of non-traditional products and robust domestic demand drove growth in May. Non-traditional exports rose on the back of growing sales of fishing, agriculture, textiles and chemical products to buyers abroad. Moreover, in the group of traditional products, exports of iron, silver, zinc, gold and natural gas recorded strong increases. On the domestic demand side, retail sales expanded solidly, and consumer credit gathered further pace compared to the previous month.
In terms of productive sectors, annual economic growth in May was broad-based, with the agriculture, fishing and manufacturing sectors leading the way.
Consequently, annual average variation in economic activity came in at an over one-year high of 3.6% in May, up from April’s 3.1%.
Peru GDP Forecast
LatinFocus Consensus Forecast panelists expect GDP will expand 4.0% in 2018, which is down 0.1 percentage points from last month’s projection. For 2019, the panel expects the economy to grow 3.4%.