Peru: Economic activity growth improves in March
Latest reading: Economic activity increased 4.7% in year-on-year terms in March, which was above February’s 2.8% increase and in line with market expectations. Looking at the details of the release, the commerce, manufacturing and mining sectors gained steam in March, while the agricultural sector decelerated.
On a monthly basis, economic activity dropped 0.1% in March, contrasting February’s 0.4% expansion.
Meanwhile, over Q1 as a whole, economic output rose 3.9% year on year, well above the Latin American average for the fourth straight quarter. A higher anchovy catch, strong metal mining activity, healthier construction investment and higher real wages all underpinned the economy in the period.
Outlook: Economic growth will have slowed in April on less working days due to the timing of the Easter holidays this year, but should keep outpacing the Latam average in Q2 as a whole.