Peru: Growth in economic activity decelerates markedly in October
December 15, 2016
Economic activity expanded 2.1% in October over the same month last year, which was below the 4.1% increase seen in September and undershot market expectations of 3.0% growth. The slowdown was caused by contraction in the manufacturing and construction sectors, along with sluggish growth in the agricultural sector.
Growth remained broad-based however, with the mining and hydrocarbon sector a major contributor. A fall in crude oil production was more than offset by an expansion in metal extraction and natural gas production. Among the metals, copper production led the way with growth of 39.0% yoy. Other sectors such as transport, fishing and finance also posted solid growth.
The annual average variation in economic activity was 4.2% in October, marginally below September’s 4.3% reading.
Author: Oliver Reynolds, Economist