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Economy continued to recover in July after Peru entered Phase 3 of reopening

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14:19 | Lima, Sep. 15.

Peru's national productive activity continued to recover in July, driven by the start of Phase 3 of the economic reopening —stipulated by the Government— the National Institute of Statistics and Informatics (INEI) reported on Tuesday.

Although the GDP fell 11.7% in July, it is a less pronounced drop than June's 18.06% decrease, which shows the national production activity has recovered month after month, according to INEI's figures.

Even September's 11.7% decline is less than the 12% contraction projected by the market.

It must be borne in mind that the economy contracted 16.3% in March and 40.49% in April (the worst fall of the year). But the fourth month of the year marked a turning point in Peru's economic growth because negative GDP rates have been steadily reversed after April.

In May, the economic activity registered a drop of 32.75%, thus marking a trend that continued until July.

Phase 3 of the economic reactivation in Peru began on July 1, after the Executive Branch issued Supreme Decree No. 117-2020-PCM in El Peruano official gazette.

The implementation of Phase 3 included the resumption of 60 economic activities, in addition to the ones restarted in Phase 2 and Phase 1, following the cessation of activities decreed in the second half of March due to the health emergency caused by the COVID-19 pandemic.

According to INEI, the national productive activity fell 16.53% between January and July this year, as well as 8.53% between August 2019 and July 2020. 

(END) SDD/JJN/RMB/MVB

Published: 9/15/2020
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