Peru | GDP contracts again in January

Summary

GDP contracted 1.0% year-on-year in January. Mining and hydrocarbons weighed down activity in January. These sectors were joined by others that have been experiencing contractions for almost a year, such as commerce and services

Key points

• Key points:
• On the positive side, there was fishing (due to the greater landings of anchovy), which had a favorable impact on primary manufacturing. Construction would also have registered a strong expansion
• It is important to note that according to the INEI in seasonally adjusted terms, GDP grew again in January compared to the previous month, but is still below its pre-crisis levels and that the normalization of activity continues to lose momentum
• This loss of momentum appears to have been accentuated in February as a result of the targeted lockdown measures that were implemented that month. Although these were less restrictive than those that occurred in the second quarter of 2020
• In March, the relaxation of the isolation measures will provide a new boost to the activity, which could help it to return to the path of recovery
• Employment also stumbled in February: jobs in Metropolitan Lima fell again and the underemployment rate increased

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