Peru: Economic activity grows slightly faster in July
September 21, 2012
In July, economic activity increased 7.2% over the same month last year, which came in above both the 7.1% expansion recorded in June and market expectations that had economic growth maintaining the pace at 7.1%. The reading marked, in fact, the fastest pace since August 2011. According to the statistical institute, healthy growth in the construction sector as well as in services was the main driver behind the monthly increase. On a monthly basis, economic activity grew a seasonally adjusted 0.66% in July, which was above the 0.45% increase recorded in June. Despite the July pick-up, the trend stabilized, with annual average growth in economic activity remaining steady at June's 6.1%. The government expects the economy to expand 6.0% this year. Meanwhile, the Central Bank revised its growth forecast and now expects the economy to grow 6.0% this year, above its previous 5.8% estimate. For 2013, the Bank sees the economy expanding between 5.8% and 6.2%.
Author: Ricardo Aceves, Senior Economist