Peru: Economic activity growth eases in January but remains robust
Latest reading: Economic activity rose 4.1% in year-on-year terms in January, below December’s 4.9% increase but well above the Latin American average. January’s expansion was broad-based; manufacturing, services and construction all saw solid gains, while fishing output rose by double digits due to a better anchovy catch.
On a monthly basis, economic activity increased 0.3% in January, contrasting December’s 0.2% fall. Meanwhile, annual average economic activity growth rose to 3.5% in January (December: +3.3%), pointing to an improving trend.
Panelist insight: On the outlook, Goldman Sachs’ Santiago Tellez said:
“We expect the activity momentum to slow to slightly below trend-growth over the next readings as some transitory tailwinds dissipate. Beyond that, the increased risk of political volatility in 2025 may weigh on business sentiment and private investment, whereas global geopolitical tensions may impact a hitherto very strong external demand. On the positive side, activity will benefit from robust exports, a benign inflation backdrop, and a resilient labor market.”