Peru: Economic activity decelerates in March
May 15, 2013
In March, economic activity increased 3.0% over the same month last year, which represents a significant deceleration compared to the 5.1% expansion recorded in February. In addition, the reading exceeded market expectations that had economic activity slowing to 4.5%. The monthly slowdown was the result of a deceleration in commerce as well as a deterioration in manufacturing output.
A month-on-month assessment saw economic activity increasing a seasonally adjusted 0.37% in March, which came in below the 0.86% expansion observed in February.
As a result of the slower annual expansion the trend points downwards, with annual average growth in economic activity falling from 6.2% in February to 6.0% in March.
In its March inflation report, the Central Bank projects the economy to grow between 6.0% and 6.5% in the full year 2013. For 2014, the Bank sees the economy expanding within the same range.
LatinFocus Consensus Forecast panellists expect GDP to expand 6.1% this year, which is up 0.1 percentage points from last month's projection. For 2014, the panel expects the economy to increase 6.2%.
Author: Ricardo Aceves, Senior Economist