Peru | Positive GDP surprise in August

GDP contracted 9,8% in July, surpassing expectations and consistent with the gradual recovery of the economy. However, there’s still a big gap to close.

Key points

• Key points:
• On a sectoral level, the GDP contraction observed in August was generalized, with the exception of some services that have maintained good performance
• Some high frequency indicators have recovered or got closer to the levels observed in a similar period of 2019, but they also evidence a moderation in the pace of recovery
• Beyond the fragility of the current economic situation, it is important to point out that Peru’s recovery has been more pronounced than in the rest of Latam. There is still a big gap to close and lower uncertainty (stemming from external, sanitary and political factors) is needed to facilitate private spending to become a positive driver of economic activity
• It is important to mention that one of the main elements weighing on demand’s weakness is employment. The job loss during the sanitary crisis has been significant

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