Peru: Economic activity starts the fourth quarter on a strong note
December 14, 2018
Economic activity expanded 4.2% year-on-year in October, doubling September’s 2.1% increase. National production in the January–October period, meanwhile, rose by 3.7% from the same period in 2017.
Growth came on the back of solid consumer spending, as well as of a strong expansion in non-traditional exports. Retail sales expanded at a healthy pace in October, while consumer credit growth remained strong. On the external side, foreign sales of textile, fishing, chemical, metal-mechanical and iron and steel products recorded the strongest increases.
In terms of productive sectors, all sectors except mining continued to expand. In particular, the construction, fishing, agricultural and manufacturing sectors recorded the fastest expansions. While the agricultural sector continued to benefit from favorable weather conditions, the construction sector was boosted by surging investment in public infrastructure.
Meanwhile, annual average variation in economic activity came in at 3.3% in October, marginally up from September’s 3.2%.
Peru GDP Forecast
LatinFocus Consensus Forecast panelists expect GDP will expand 3.8% in 2019, which is unchanged from last month’s projection. For 2020, the panel sees the economy growing 3.7%.