Peru | GDP growth surprised positively in July and reached 4.5% year-on-year

After the poor result in June, activity advanced 4.5% year-on-year in July. The release of private pension funds and an additional working day had a positive impact on this figure.

Key points

• Key points:
• By productive sectors, the performance of the non-primary component of GDP stood out, which expanded by 4.8%. Within this, an almost general improvement was observed. The primary component, for its part, after contracting in June (-2.6%), advanced 2.2% in July, which was favored by an improvement in mining activity.
• The indicators available for August suggest that activity could have moderated its rate of expansion in that month.
• In our base scenario we continue to forecast that GDP will grow between 3.0% and 3.5% year-on-year in the second half of the year (2.5% in the first half). The increased spending financed by the withdrawal of pension funds, the decrease in interest rates, and the gradual consolidation of business expectations in the optimistic range favor this behavior of activity and, above all, the demand of the private sector.

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