Peruvian economy continued to recover in August —for the fourth consecutive month— after a partial resumption of economic activities in Phase 3 of the Economic Reactivation, the National Institute of Statistics and Informatics (INEI)
reported on Thursday.
Thus, in August, Peru saw the least severe drop over the past five months (-9.82%), compared to the same month last year.
According to INEI, this less pronounced decline is associated with the implementation of Phase 3 of the Economic Reactivation.
Also, it reported that the national production fell 15.66% in Jan-Aug this year, and 9.63% between September 2019 and August 2020.
Although Peru's gross domestic product (GDP) fell 9.82% in August, this is a smaller drop than July (-11.7%)
, June (-18.06%)
, and May (-32.75%)
, which shows the national production keeps recovering month after month.
It should be borne in mind that the economy contracted 16.3% in March and 40.49% in April (the worst performance of the year).
However, the fourth month of the year marked a breaking point because —after April— negative GDP rates are being reversed.
The August result was driven by lower production in most sectors, mainly in accommodation and restaurants; manufacturing; mining and hydrocarbons; transport, storage, and communications; as well as trade and business services provided to companies. They accounted for nearly 82% of the result.
On the other hand, financial and insurance; telecommunications; as well as public administration and defense recorded a positive performance.