Government Consumption in Peru
The economy of Peru recorded an average growth rate of 4.0% in the decade to 2022. In 2022, government consumption growth was -3.4%.
Peru Government Consumption Chart
Note: This chart displays Government Consumption (ann. var. %) for Peru from 2014 to 2023.
Source: Macrobond.
Peru Government Consumption Data
2019 | 2020 | 2021 | 2022 | 2023 | |
---|---|---|---|---|---|
Government Consumption (ann. var. %) | 4.3 | 7.9 | 4.8 | -0.2 | 4.6 |
GDP records quickest expansion since Q1 2022 in the third quarter
GDP reading: GDP growth gathered traction to 3.8% year on year in the third quarter, up from 3.6% in the second quarter and marking an over two-year high. The upturn reflected improvements in private consumption, fixed investment and exports.
Broad-based expansion: Private consumption growth hit an over two-year high of 3.5% in the third quarter (Q2: +2.3% yoy). A stronger labor market and drawdowns from pension funds were behind the acceleration. Meanwhile, fixed investment growth improved to 6.8% in Q3, following the 3.1% increase recorded in the previous quarter. Public investment continued to far outpace private investment, though the latter was aided by stronger business sentiment and lower interest rates. Public spending growth waned to 4.6% in Q3 (Q2: +3.9% yoy). On the external front, exports of goods and services rebounded, growing 10.9% year on year in the third quarter, which marked the best reading since Q3 2021 (Q2: -1.4% yoy). In addition, imports of goods and services growth picked up to 7.0% in Q3 (Q2: +3.9% yoy).
Panelist insight: On the latest reading and outlook, Itaú Unibanco analysts said: “The activity recovery remains on track. Most business confidence indicators remain in positive territory, while imports of capital goods rose by 12% in the third quarter. However, the bouts of strikes related to security concerns pose transitory downside risks to activity. We estimate that each day of protest has an impact of 0.1 pp of quarterly GDP. We revised our 2024 growth forecast down to 2.9% (from an above-consensus 3.1%), implying growth sequentially flat in 4Q24. A renewed US-China trade war poses downside risks to Peru’s growth outlook for 2025 and beyond.”
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Peruvian government consumption projections for the next ten years from a panel of 23 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable government consumption forecast available for Peruvian government consumption.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Peruvian government consumption projections.
Want to get access to the full dataset of Peruvian government consumption forecasts? Send an email to info@focus-economics.com.
Latest Global GDP News
-
United Kingdom: Economy remains weak in the fourth quarter GDP reading: GDP increased 0.1% on a seasonally adjusted quarter on quarter basis in Q4 (Q3: 0.0% s.a. qoq), beating... -
Hong Kong: Economic growth accelerates in the fourth quarter GDP reading: GDP expanded 2.4% on an annual basis in Q4 (Q3: +1.9% year on year), broadly in line with... -
Mexico: Economy records sharpest contraction since Q3 2021 in the fourth quarter GDP reading: According to a preliminary reading, GDP dropped 0.6% on a seasonally adjusted quarter on quarter basis in the... -
Czech Republic: GDP growth steady in Q4 Stable expansion meets expectations in Q4: According to a preliminary estimate, the economy expanded 0.5% on a calendar- and seasonally... -
France: GDP records sharpest contraction since Q1 2022 in Q4 GDP reading: GDP declined 0.1% on a seasonally adjusted quarter on quarter basis in the fourth quarter, contrasting the 0.4%... -
Serbia: Economic growth accelerates moderately in the fourth quarter GDP reading: According to a preliminary reading, GDP growth accelerated to 3.3% year on year in the fourth quarter from... -
Canada: Economy contracts at sharpest pace since December 2022 in November GDP reading: GDP fell 0.2% month-on-month in seasonally adjusted terms in November (October: +0.3% mom). November’s outturn marked the worst...