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Peru: Economic activity growth rises in May
Latest reading: Economic activity expanded 2.7% year on year in May (April: +1.4% yoy). The acceleration was to be expected given that April’s reading was dampened by the shift in the timing of Easter this year vs last year, though the May reading overshot market expectations. Looking at the details of the release, May’s pickup was broad-based, with the commerce, manufacturing, agricultural and construction sector sub-sectors all accelerating.
On a monthly basis, economic activity rose at a more moderate pace of 0.1% in May (April: +0.4% mom).
Panelist insight: On the outlook, BBVA analysts said:
“Our preliminary estimate for GDP growth in June falls within a range of 3.5% to 4.5%. Taking into account the official figures for April and May as well, our economic activity growth forecast for the second quarter of this year (3.2%), made a couple of months ago, now has a downward bias. This revision is mainly linked to greater weakness in primary sector activities, particularly mining (due to more significant impacts from problems affecting certain mines) and fishing.”
