Peru: Pace of economic expansion slows considerably in November
January 15, 2018
Economic activity expanded 1.8% year-on-year in November, decelerating considerably from October’s 3.0% expansion. With November’s reading, economic activity expanded for 100 consecutive months.
A robust external sector once again sustained the expansion, led by growth in sales of fishing, metal-mechanical, chemical, textile and mining products to overseas markets. Moreover, domestic demand, despite weakening, continued to underpin growth. It was reflected in rising imports of non-durable consumer goods, slightly higher retail sales and robust consumer credit.
Growth was nearly broad-based, with the telecommunication, mining, construction and trade 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 manufacturing sector contracted, as did the fishing sector.
Following the decrease in the headline print, annual average variation in economic activity in November came in at 2.4%, slightly down from October’s 2.5%.
Peru GDP Forecast
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%.