Peru: Economic activity accelerates in August
October 18, 2010
In August, economic activity rose 9.2% over the same month last year, which came in above both the 9.0% increase observed in the previous month and market expectations, which had seen economic activity growing at the same speed as in July. The pick-up in economic activity was the result of a faster expansion in the manufacturing sector (July: +17.2% year-on-year; August: +18.9% yoy) as well as in construction (July: +12.3% yoy; August: +14.2% yoy), while commerce continued to grow at the same 9.0% pace recorded in July. As a result of the strong expansion, the trend continues to point upwards, with annual average growth in economic activity jumping from 5.7% in July to 6.5% in August, which marks the highest level since March 2009. A month-on-month comparison confirms the improvement suggested by the annual figures, as economic activity increased 0.12% in August, contrasting the 0.67% decline registered in July. In its September inflation report, the Central Bank revised its growth estimates for this year to 8.0% from the previous 6.6% growth estimate. For 2011, the Bank sees the economy expanding 6.0%.
Author: Ricardo Aceves, Senior Economist