During 1Q21, Peru's Gross Domestic Product continued to recover, registering a positive rate of growth after four quarters of negative growth, reaching a year-on-year rate of 3.80%. This re-activation of economic activity was mainly due to the greater dynamism and level of activity in non-primary sectors such as trade, services and construction. With regard to the labor market, the unemployment rate fell compared to the previous quarter, down to a rate of 14.26%. The year-over-year variation rate of employment creation in Peru reduced its fall, and stood at a rate of -13.92%. The Peruvian Sol depreciated against the dollar compared to the previous quarter, registering an exchange rate of 3.66 S/$. Moreover, the inflation rate increased in 1Q21 up to 2.56%.

 


Macroeconomic outlook report: Peru 1Q21

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Macroeconomic overview

  • During 1Q21, the year-on-year GDP variation rate increased by 5.50 p.p. compared to 4Q20, up to a growth rate of 3.80%.
  • This partial and gradual recovery in economic activity was mainly due to the greater dynamism observed in non-primary sectors such as trade, services and construction. This boosted domestic demand, which registered a year-on-year growth of 5.39%.
  • Regarding the labor market, the unemployment rate decreased by 0.87 p.p. compared to the previous quarter, down to a rate of 14.26%. The year-on-year variation rate of employment in Peru stood at -13.92%, after decreasing its contraction by 3.10 p.p. with respect to the previous quarter. Nevertheless, it remained well below pre-crisis levels.
  • The average exchange rate of the Peruvian Nuevo Sol against the US dollar depreciated compared to the fourth quarter, and recorded an exchange rate of 3.66 S/$.
  • Finally, the inflation rate increased by 0.61 p.p. when compared to 4Q20, up to a rate of 2.56% in 1Q21.

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