During 3Q20, Peru's Gross Domestic Product registered a year-over-year variation rate of -9.43%, after recording an important increase compared to the previous quarter. This increase in the GDP growth was mainly due to the easing of the containment measures throughout the quarter, which resulted in the reactivation of demand, both on the internal and external side. Regarding the labor market, the unemployment rate increased with respect to 2Q20, up to 16.16%. The year-over-year growth rate of employment creation in Peru increased significantly compared to the previous quarter, up to a rate of -30.28%. The Peruvian Sol depreciated against the dollar when compared to the previous quarter, registering an exchange rate of 3.55 S/$. Furthermore, the inflation rate increased in 3Q20, up to a rate of 1.79%.
Macroeconomic outlook report: Peru 3Q20
- During 3Q20, the year-over-year variation rate of the Peruvian GDP registered an important increase of 20.35 p.p. with respect to 2Q20, up to a rate of -9.43%.
- This increase was due to the gradual easing of the containment measures throughout the quarter, which motivated the partial recovery of both domestic and external demand. In further detail, this partial recovery was incentivized by the important increases registered by private consumption and exports. This said it´s worth mentioning that out of the components of the GDP, only public consumption returned to pre-crisis levels during the third quarter.
- Regarding the labor market, the unemployment rate increased by 3.36 p.p. with respect to the previous quarter, reaching a rate of 16.16%. On the other hand, the year-on-year variation rate of employment in Peru stood at -30.28%, after increasing compared to the previous quarter. This said, the employment level continued to stand considerably below pre-crisis levels.
- The average exchange rate of the Peruvian Nuevo Sol against the US dollar depreciated during the third quarter of 2020 when compared to the one observed in the second quarter of 2020, and registered an exchange rate of 3.55 S/$.
- Finally, the inflation rate increased in 3Q20 up to 1.79%, 0.09 p.p. more than the value registered in 2Q20.
For more information, click here to access the executive executive document in pdf (only avalaible in Spanish).