Peru | Economic activity affected by climate surprises on the downside

Summary

Peru's economic activity grew 1.8% year-on-year in May, below expectations, due to climate anomalies that impacted primary sectors. Despite this, non-primary sectors, driven by domestic demand, maintained their dynamism.

Key points

• Key points:
• Primary GDP contracted by 8.2% year-on-year, mainly dragged down by the fishing sector, which plummeted by 73% due to lower anchovy catches from an extended ban.
• In contrast, non-primary GDP advanced by 4.3% year-on-year. The commerce sector was the most dynamic with 6.9% growth, followed by non-primary manufacturing, which expanded by 5.4%.
• June's leading indicators show an acceleration in imports of consumer and capital goods. Light vehicle sales grew by 53.1% and cement consumption increased by 11.6%.
• Looking ahead, demand indicators are expected to remain solid, although the El Niño phenomenon will continue to affect some sectors. The growth projection of 3.1% for 2026 is maintained.

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