Peru | Positive GDP surprise in February

GDP dropped 4,2% YoY in February. The main factor behind the result are the harsher isolation measures implemented during the month. The contraction was generalized amongst the sectors with the exception of construction, fishing, and telecommunication and financial services.

Key points

• Key points:
• An additional factor to explain the contraction is that there were less days in February’s calendar given that 2020 was a leap year.
• On the positive side, the construction sector continues to show sustained growth for six months thanks to dynamism of public investment and self-building.
• According to the statistics institute, February GDP was 2,1% below January in seasonally adjusted terms. Thus, economic activity remains below pre-crisis levels.
• In March, the easing of mobility restrictions should have favored economic activity and help resume the process of normalization.
• The labor market also shows a tendency towards normalization but with slower progress compared to activity. The unemployment rate is slightly above 15% and the sub-employment rate is at 51,6%.

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