Peru: Economic activity strengthens in April
June 14, 2013
In April, economic activity expanded 7.7% over the same month last year, which was more than double the 3.0% increase registered in March. In addition, the reading slightly overshot market expectations that had economic activity growing 7.4%. The monthly reading was the result of strong growth in construction activity, which soared 26.5% annually in April, as well as a rebound in manufacturing production.
A month-on-month comparison confirms the strong growth suggested by the annual data, as economic activity increased a seasonally adjusted 0.80%, which is well above the 0.37% expansion observed in March.
As a result of the stronger annual expansion the trend now points upwards, with annual average growth in economic activity rising from 6.0% in March to 6.2% in April.
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