Peru’s Economy Expected to Grow by 8.8% in 2010
Peru’s economy likely grew by 9.2% y/y in October, compared with a 9.4% y/y three-month moving average (3MMA), bringing the year-to-today reading to 8.7% in 2010 from a decline of 0.3% YTD in 2009. Strong domestic demand (12.5% y/y)—although growing less robustly than in previous months—and beneficial external backdrop, as reflected by higher commodity prices, underpins the strong economic performance. At the sector level, the economic activity should benefit from solid expansion in manufacturing (17.5% y/y), retail sales (10.4% y/y), construction (10.3% y/y) and services (9% y/y). Mining, however, declined by 0.6% y/y, as indicated in the national statistics institute’s (INEI) advance report on economic activity. We expect Peru to expand by a solid 8.8% in 2010.
Peru’s Supply-Side Activity (NSA, 3MMA y/y)
Source: INEI and RGE
Editor’s Note: This post is excerpted from a much longer analysis available exclusively to RGE Clients, LatAm Focus: Week Ahead (Week of December 13, 2010)
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