Peru: Economic activity surges at the fastest pace in five years in April
June 15, 2018
Economic activity accelerated strongly in April, jumping 7.8% year-on-year, double the 3.9% annual growth rate observed in March. April’s result marked the fourth consecutive acceleration, following three successive months of softening growth in Q4 2017.
A supportive external sector and strengthening domestic demand drove growth in April. Exports rose on the back of growing sales of mining, agricultural, metal-mechanical and fishing products to buyers abroad. The annual pace of export growth in April was buoyant, coming in at double-digit. On the domestic demand side, retail sales expanded solidly, and consumer credit gathered pace compared to the previous month. Moreover, soaring imports of non-durable goods were a further testimony to robust domestic demand.
Annual economic growth in April was generally broad-based, with the hydrocarbons, agriculture, fishing, transport, manufacturing and telecommunications sectors leading the way. However, The mining sector contracted slightly in April, mainly due to a one-week shutdown at the Las Bambas mining plant and the road blockade in the Matarani port.
Consequently, annual average variation in economic activity came in at an over one-year high of 3.1% in April, up from March’s 2.5%.
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%.