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JP Morgan expects recovery in Peru economy in 3Q

12:24 | Lima, Jun. 24.

The resumption of economic activities in Peru started to have an impact on its gross domestic product (GDP) since May and will allow it to return to the path of growth as of the third quarter of this year, analysts expect.

According to seasonally adjusted JP Morgan indicators, Peruvian economy fell 16% in the first quarter of 2020, that is, it saw a decline from the fourth quarter of 2019 (October, November, and December).

JP Morgan expects a 58% decrease in GDP in the second quarter of 2020, compared to the first three-month period of the year (January, February and March).

Peru's economic activity fell 40.49% year-on-year in April, due to the state of national emergency to deal with the coronavirus, which affected the country's production.

However, a few weeks ago, Economy and Finance Minister Maria Antonieta Alva affirmed that the Peruvian economy witnessed a slight recovery in the last week of May.

In addition, the government official predicted that the South American country would return to the path of growth from June onwards.

Better figures

Within this framework, JP Morgan has projected that —in the third quarter (July, August and September) of 2020— Peru's economy will register a 35% growth compared to the second quarter of the same year.

Furthermore —for the fourth quarter of 2020— JP Morgan foresees an expansion of 30% of national GDP, in relation to the previous quarter.

(END) CNA/JJN/RMB/MVB

Published: 6/24/2020
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