Peru: Economic activity growth moderates in May but remains upbeat
Economic activity grew 5.0% in year-on-year terms in May, which followed April’s 5.3% increase and beat market expectations. The slight slowdown was due to softer growth in the commerce, agricultural and construction sectors, which more than offset improved readings for manufacturing and mining.
On a monthly basis, economic activity rose at a softer pace of 0.1% in May (April: +1.7% mom). Meanwhile, the trend improved, with the annual average growth of economic activity coming in at a one-year high of 0.8% in May, up from April’s 0.3%.
On the reading and outlook, Goldman Sachs’ Santiago Tellez said:
“Real GDP growth in Q2 has been firmer than anticipated, owing to the strong rebound of primary activities following previous large disruptions. We expect the activity momentum to slow over the next readings as these transitory tailwinds lose steam. Beyond that, we expect positive but below-trend growth in the remainder of the year driven by still tight external and domestic financial conditions, soft business sentiment, and weak governability conditions.”