Peru: Pace of economic expansion rebounds at the beginning of the year
Economic activity regained steam in January, increasing 2.8% year-on-year, more than double the 1.3% growth rate observed in December. January’s acceleration follows three consecutive months of softening growth.
A supportive external sector was once again behind the expansion in January, led by growth in sales of agricultural, metal-mechanical, chemical, textile and mining products to overseas markets. The annual pace of export growth in January was considerably stronger than in the previous month. Household consumption continued to increase in the month, and at a more robust pace than in December. It was reflected in faster expansion in consumer credit and growth in retail sales.
Annual growth in January was generally broad-based, with the construction, agricultural, telecommunication, trade and transport sectors leading the way. The construction sector continued to benefit from rising public infrastructure expenditure, as well as from expanding office building activity. On the downside, the mining sector recorded a slight contraction, due to lower metal mining production.
Despite the increase in the headline print, annual average variation in economic activity came in at 2.3% in January, slightly down from December’s 2.5%.