Andina

Peru economy up 6.43% in May, above expectations

10:36 | Lima, Jul. 15.

Peruvian economy grew 6.43% in May this year, above market expectations, marking 106 months of sustained growth, according to the National Institute of Statistics and Informatics (INEI).

As stated by INEI's National Production Technical Report, the national production expanded 4.83% in January-May and 3.55% in the last 12-month period (June 2017-May 2018). 

It must be noted the average growth rate in April and May was 7.12%.

This result is above expectations of analysts and the Central Reserve Bank (BCR), which estimated a 6% increase for May last Friday.

Domestic and external demand 

Peru's GDP was driven by the positive growth in external demand for non-traditional products (27.40%). Of note are those from the fishing, agricultural, chemical, and textile sectors. 

Traditional products such as fish meal, cotton, iron, silver, zinc, gold, and natural gas also stood out.

This rise was also influenced by the domestic demand recovery, as reflected in higher imports of non-durable consumer goods (1.28%), retail sales (3.30%), and consumer loans (7.68%).

All sectors rose

All productive sectors contributed to Peru's GDP growth in May 2018, including manufacture, farming, construction, trade, fishing, mining and hydrocarbons, as well as transport, storage, and communications.

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Published: 7/15/2018