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Macroeconomic outlook report: Peru

Second quarter of 2019

During 2Q19, Peru's Gross Domestic Product grew at a year-over-year rate of 1.16%, decelerating by 1.20 p.p. compared to the previous quarter. This performance was mainly due to the behavior of trade balance, as there was a reduction in the year-over-year growth of exports of 5.42 p.p. with respect to the previous quarter, standing at a year-on-year growth rate of -2.87%, accompanied by an increase in the year-on-year growth rate of imports of 0.53 p.p., up to a rate of 0.18%. In the labor market, the unemployment rate decreased by 1.85 p.p. with respect to 1T19, reaching 6.30%. The year-over-year growth rate of employment creation in Peru accelerated by 0.16 p.p. from the previous quarter to 0.75%. The Peruvian Sol remained at the same value with respect to the dollar when compared to the previous quarter, at an exchange rate of 3.32 S/./$. The inflation rate increased in 2Q19 to 2.54%.

Macroeconomic overview

  • The year-over-year growth rate of the Peruvian GDP registered during 2Q19 a deceleration of 1.20 p.p. compared to 1Q19, to a rate of 1.16% in 2Q19.
  • This deceleration in GDP growth was mainly due to the trade balance, as the year-on-year growth rate of exports was reduced by 5.42 percentage points to a growth rate of -2.87%. This was accompanied by an increase in the year-on-year growth rate of imports of 0.53 p.p. to reach a growth rate of 0.18%. Domestic demand was 2.05%, 0.47 p.p. higher than in 1Q19.
  • In the labour market, the unemployment rate stood at 6.30%, down 1.85 percentage points from 1Q19. The year-on-year growth rate of employment in Peru accelerated by 0.16 percentage points from the previous quarter to 0.75%.
  • The average exchange rate of the Peruvian nuevo sol against the US dollar remained at the same value in the second quarter as compared to the one observed in the first quarter, with an exchange rate of 3.32 S/./$.
  • The inflation rate increased in 2Q19 to 2.54%, 0.41 percentage points higher than in 1Q19.

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.