Peru Economic Activity September 2017

Peru

Peru: Pace of economic expansion accelerates further in September

November 15, 2017

Economic activity expanded 3.2% year-on-year in September, accelerating for the second consecutive month and coming in above August’s 2.3% expansion. With this month’s result, economic activity has experienced positive growth in annual terms every consecutive month for more than eight years.

A robust external sector once again sustained the expansion, as exports grew 17.7% year-on-year in September, led by growth in sales of mining output, metal and textile products, and oil and natural gas to overseas markets. Moreover, recovering domestic demand also underpinned growth, as reflected in higher imports of non-durable consumer goods, higher retail sales and robust consumer credit.

The mining sector was again one of the fastest-growing in September, contributing the most to the expansion. The sector benefited from stronger gold, copper, zinc and iron production. Stronger activity in the telecommunication and construction sectors also contributed notably to September’s expansion. Growth in construction activity was driven by office building and public infrastructure works, as the government is ramping up post-Coastal El Niño reconstruction spending. On the downside, the fishing sector continued to plummet, due to a lack of species for direct human consumption, and weighed on the manufacturing sector.

Despite the increase in the headline print, annual average variation in economic activity in September came in at 2.4%, slightly down from August’s 2.5%.

LatinFocus Consensus Forecast panelists expect GDP to 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%.


Author: Massimo Bassetti, Economist

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Peru Economic Activity September 2017

Note: Year-on-year changes of economic activity and annual average growth rate in %.
Source: Peru National Statistical Institute (INEI) and FocusEconomics calculations.


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