Peru | Economic activity continued to show an interesting performance in August

Summary

Economic activity grew 11.8% year-on-year in August, still a high rate due to a low comparison base. A comparison of the 2021 figures with those of 2019 (pre-health-crisis situation) shows that activity grew 1.6% in August (July: 0.4%)

Key points

• Key points:
• Activity performed well in a context in which health indicators improved, insulation measures became more flexible, households had greater liquidity, monetary and fiscal policies continued to support activity, and in spite of weakening confidence.
• According to seasonally adjusted terms, for INEI, production accelerated from 0.2% in July (expansion with respect to the previous month) to 1.5% in August.
• Economic activity continues to show resilience in September according to available indicators.
• The low levels of confidence, however, suggest that further down the road activity will lose momentum, perhaps most clearly from the end of this year.
• Employment continues to improve, although it appears to be losing traction. On the positive side, the number of formal jobs at the national level exceeded pre-pandemic levels in August. However, data available for September suggests that in Lima the unemployment rate increased and the wage bill declined.

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