Peru’s Economic Activity Pushes GDP Growth to 12.74%

On a seasonally adjusted basis, Peru’s economic activity accelerated by 1.15% m/m in June from 0.7% m/m in May and 0.12% m/m in April, pushing GDP growth higher to 12.74% q/q seasonally adjusted annual rate (SAAR) in Q2 2010 from 8% q/q SAAR in Q1 2010. Solid gains in mining (7.1% m/m), manufacturing (2% m/m) and services (1.2% m/m) pushed activity up, despite slower performances in retail (0.26% m/m) and a decline in construction (-0.2% m/m).

From the supply side, all sectors registered important growth. Construction investment surged 22.7% y/y, thanks to a 53% y/y increase in government infrastructure projects and a 44% y/y increase in capital and construction materials imports. Manufacturing gained 21.6% y/y, which is the highest recorded gain since December 1994, as exports and internal demand recovered. Services jumped 9.2% y/y, driven by strong growth in business services (12.3% y/y) and in the financial sector (11.6% y/y).

Editor’s Note: This post is excerpted from a much longer analysis available exclusively to RGE Clients, LatAm Focus: Lula’s Protégé Dilma Rouseff Advances in Brazil Election

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