Peru: Output remains weak

Summary

GDP went up in July by 1.2%YoY, accelerating with respect to the previous month. This suggests that the recovery expected for the second half of the year has already begun. A closer analysis indicates, however, that this improved performance mainly reflects a milder contraction of the primary sectors of the economy, while those sectors that better reflect the trend in output continue to lose strength. Hence, there does not seem to be any substantial improvement in the outlook for economic activity. Available indicators for August suggest something similar. In this context, we expect that in the short term output growth prints will remain relatively weak.

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