Peru | Analysis of the impact of COVID-19 on consumption with real-time data

Summary

BBVA Research has developed a high-frequency indicator to track consumption in different countries. In Peru, this indicator shows that, after an initial significant contraction in household's purchases when confinement began, a recovery in spending is already visible with information as of July

Key points

• Key points:
• High-frequency indicators are required for timely tracking of how economies evolve when activities are restarted.
• BBVA Research's consumption indicator for Peru shows an acceleration in household spending at the beginning of July, possibly explained by contained spending during the months of confinement.
• During the period of confinement, online purchases increased compared to face-to-face purchases, and their importance is now between 40% and 50% compared to 20% at the beginning of the year.
• During the initial days of confinement, card purchases at supermarkets and pharmacies increased significantly. With the culmination of the quarantine at the beginning of July, we observe a strong increase in purchases in department stores, electronics and decoration and furniture.
• Despite the initial uncertainty, no major spike in ATM cash withdrawals was observed.

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