Peru: Economic activity gains momentum in third quarter
November 24, 2012
In the third quarter, GDP expanded 6.5% over the same period last year. The reading represented an improvement over the revised 6.3% increase recorded in the second quarter (previously reported: +6.1% year-on-year) and marked the fastest growth rate since the third quarter of 2011. Moreover the figure overshot market expectations, which had the economy slowing to 6.0%. The quarterly improvement reflected a notable acceleration in domestic demand, spurred by healthy growth in private consumption and surging fixed investment. Total consumption increased 5.9% annually in Q3, buttressed by a 5.8% expansion in private consumption (Q2: +5.8% year-on-year) and a 6.7% increase in public spending (Q2: +10.5% yoy). Meanwhile, gross fixed investment accelerated from a 15.7% increase in Q2 to a 17.0% expansion in Q3. The external sector, on the other hand, deteriorated compared to the previous quarter, as exports of goods and services contracted 0.9% in Q3, exceeding the 0.7% drop observed in Q2. In contrast, imports jumped 15.0% in the third quarter, well above the 6.1% increase observed in the second quarter. As a result, the external sector's net contribution to overall economic growth deteriorated from minus 1.4 percentage points in Q2 to minus 3.7 percentage points in the Q3.
Author: Ricardo Aceves, Senior Economist