Peru Economic Activity July 2017

Peru

Peru: Pace of expansion cools dragged down by manufacturing and fishing

September 22, 2017

Economic activity expanded 1.6% year-on-year in July over the same month of the previous year, a significant deceleration from June’s 3.6% rise and the slowest pace of expansion in three months.

A robust external sector sustained July’s expansion as exports grew by 11.7%, led by growth in sales to overseas markets of agricultural, textiles and fishery products as well as of metal products. Fueling the jump in agricultural exports was a robust 9.0% output growth in the agricultural sector. Moreover, the good performances of the I&T, mining and hydrocarbons and construction sectors also underpinned growth. Nevertheless, the plunge recorded in the fishing sector—an almost 50% contraction which comes after June’s surge in fishing output—influenced negatively the overall result, as it also caused the processing and preserving of fish and fish products activity to plummet, leading the manufacturing sector to contract notably.

Consequently to the decrease in the headline result, annual average variation in economic activity in July came in at 2.8%, slightly down from June’s 2.9%.

LatinFocus Consensus Forecast panelists expect GDP to expand 2.7% in 2017, which is down 0.1 percentage points from last month’s projection. For 2018, the panel expects the economy to grow 4.0%.


Author: Massimo Bassetti, Economist

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Peru Economic Activity July 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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