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Scotiabank: Peru's economic activity continued to recover in June

12:10 | Lima, Jul. 21.

Peru's economy continued to recover in June thanks to the resumption of additional productive activities, mainly related to domestic demand, Scotiabank's Department of Economic Studies reported on Tuesday.

"The progressive restart of economic activities since mid-May has allowed a gradual recovery of the country's gross domestic product (GDP), leaving behind April's record drop (-40.5%) and the incipient recovery that started in May (-32.8%)," Deputy Manager of Real Economy at Scotiabank Pablo Nano affirmed.

"We estimate that the trend has continued in June, with a 20% drop, mainly thanks to the reopening of sectors related to domestic demand such as commerce and services," he added.

Nano explained that said sectors had the largest loss of jobs during the quarantine, so their gradual reopening would help recover part of the 2.7 million lost jobs and would contribute to the revival of private consumption.

"The GDP estimate for June is based on leading indicators such as electricity production, which reflects greater dynamism compared to the previous months," the Scotiabank officer expressed.

"Phase 2 of the economic reopening plan was approved in early June, including activities in telecommunications, security, vehicle sales, mining exploration, among other segments," he added.

(END) CNA/RMB/MVB

Published: 7/21/2020