Peru | Economic activity rebounds in the third quarter

Summary

The data corresponding to the third quarter shows a smaller output contraction in line with the recovery following the pandemic, higher public deficit due to the fiscal effort to mitigate the impact and a lower current account deficit.

Key points

• Key points:
• Output suffered a 9,4% YoY contraction in the third quarter, a positive surprise.
• The public sector deficit (cumulative last four quarters) increased to 6,2% of GDP. This is partly a result of the measures taken by the government to mitigate the impact of COVID-19.
• The current account deficit (cumulative last four quarters) decreased to 0,1% of GDP. The main driver behind the result are lower imports.
• Private capital flows did not recover in the third quarter and external public debt increased to 22% of GDP.

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