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Macroeconomic outlook report: Peru

Third quarter of 2018

During the third quarter of 2018, Peruvian GDP registered a year-over-year growth rate of 2.27%, after experiencing a deceleration of 3.15 p.p. compared to the previous quarter. This was due to lower growth in domestic demand, which decelerated by 3.53 p.p. with respect to the previous quarter, standing at 2.74%. As for the labor market, the unemployment rate decreased to a rate of 6.20%, while the employment creation rate decelerated to 0.41%. The Peruvian sol depreciated against the US dollar, reaching an average exchange rate of 3.29 S/./$ in the third quarter of 2018. The inflation rate increased to 1.32%, 0.37 p.p. above that registered in 2Q18.

Macroeconomic overview

  • The year-over-year growth rate of the Peruvian GDP registered a deceleration of 3.15 p.p. in the third quarter of the year compared to the previous quarter, to stand at 2.27%. This behavior was due to the reduction of domestic demand, which decreased by 3.53 p.p. to a rate of 2.74%, driven by lower growth in private consumption, government consumption and investment.
  • As for the external sector, exports decelerated as well as imports, which did further, by 4.82 p.p. and 5.90 p.p., respectively.
  • With regard to the labor market, the unemployment rate stood at 6.20% after a decrease of 0.02 p.p. with respect to the second quarter of 2018. Regarding the y/y rate of employment creation, it decelerated by 0.54 p.p. to 0.41%.
  • The Peruvian Sol registered an average exchange rate against the dollar of 3.29 S/./$ in the third quarter of 2018, which represented a depreciation of 0.03 sol per dollar compared to the previous quarter.
  • Inflation stood at 1.32%, after rising 0.37 p.p. with respect to 2Q18. This behavior was mainly explained by the reversal of supply checks associated with weather phenomena.

For more information, click here to access the executive executive document in pdf (only avalaible in Spanish).

© GMS Management Solutions, S.L., 2019. All rights reserved. The information contained on this publication is of a general nature and does not constitute a professional opinion or an advisory service. The data used in this publication come from public sources. GMS Management Solutions, SL assumes no liability for the veracity or accuracy of such data.