Peru. Weak output growth in June

GDP increased by 0,3%YoY in June, its lower pace in almost five years. This weakness continued to be exacerbated, as in previous months, by the primary sectors, due in part to transitory factors. July’s preliminary economic indicators seem to be somewhat more encouraging. Going forward, output should regain some speed in the rest of the year, but this would depend on both the recovery of the mining sector and the announced stepping up of the fiscal impulse. Private spending, however, would have a more moderate behaviour, investment in particular. Hence, we cannot rule out a monetary policy rate cut in September, albeit in a limited way because both inflation expectations and the current account deficit are high.

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