Peru: Economic activity speeds up in April
Latest reading: Economic activity was up 3.7% on a year-on-year basis in April, following 3.2% growth in the prior month, beating market expectations.
Relative to the previous month’s data, readings in April improved for commerce (+7.3% in annual terms vs +4.1% in March) and mining and hydrocarbons (-3.2% vs -4.6% in March). In contrast, readings worsened for agriculture (-1.6% vs -0.5% in March), construction (+12.9% vs +15.6% in March) and manufacturing (+2.2% vs +3.6% in March).
The month’s growth was driven primarily by the non-primary component, while agriculture deepened its decline due to adverse weather conditions slashing export-oriented crop yields, and mining remained in negative territory due to a drop in zinc production volumes.
In month-on-month terms, economic activity increased 0.6% in April, following a 0.1% decline in the prior month.
Panelist insight: On the near-term outlook, BBVA analysts said:
“Looking ahead, growth will be conditioned mainly by the electoral outcome, the ongoing conflict in the Middle East, and climate anomalies, which have resulted, for example, in the suspension of the first anchovy fishing season in the north-central zone (June 11) and in lower agricultural production geared toward the external market.”