Peru: Pace of expansion accelerates thanks to growing mining output
October 17, 2017
Economic activity expanded 2.3% year-on-year in August, accelerating from July’s 1.6% expansion.
A robust external sector once again sustained the expansion, as in August exports grew by 13.0%, led by growth in sales of agricultural, mining and metal products to overseas markets. Moreover, a recovering domestic demand also underpinned growth, as reflected in the higher imports of non-durable consumer goods, higher retail sales and consumer credit.
The mining sector was one of the fastest-growing in August and contributed the most to August’s expansion. The sector benefited from stronger gold, copper, zinc and iron production. Stronger activity in the telecommunication and construction sectors also contributed notably to August’s expansion, the latter driven by office-building and mining companies’ construction projects as well as by public infrastructure works. On the downside, the fishing sector continued to plunge, due to a lack of species for direct human consumption, and weighed on the performance of the manufacturing sector.
Despite the increase in the headline print, annual average variation in economic activity in August came in at 2.5%, slightly down from July’s 2.8%.