Peru. Output growth recovery is still incipient, as expected

Summary

Economic activity increased by 2,4 % yoy in October. Services and Commerce keep growing at a strong pace and there are signs of stabilization in Non-primary manufacturing. However, there are other sectors which remain weak, Mining and Construction among them. This is particularly relevant because output recovery is expected to be driven by two engines –mining production and the construction of infrastructure projects- which, at least to this moment, do not seem to be stirring up. Preliminary economic activity indicators for November suggest that GDP growth in that month could have been somewhat lower than in October. In this context, output recovery seems to be still incipient, consistent with our forecast that GDP will grow just a little bit more than 2% in the fourth quarter and about 2,6% in the year.

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