Peru. Output growth remains weak

Summary

GDP expanded by 1,2%YoY in August (BBVAe and Consensus: 1,3%), a similar figure to that of the previous month. As we have been noting for a while, output weakness is intense (growth rates are far below potential), sustained, and is not only explained by supply factors, as it was initially, but is also now related to demand-side elements. Household spending and investment indicators, for example, are increasing at a slower pace or are even going down. In this context, countercyclical policies are required, and those which have been implemented to date are not sufficient. We therefore expect output to accelerate only mildly in the last quarter of the year, taking economic activity growth in 2014 to a range of 2,5%/2,9%.

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