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Macroeconomic outlook report: Peru

First quarter of 2019

During 1Q19, Peru's Gross Domestic Product grew at a year-over-year rate of 2.28%, decelerating by 2.41 p.p. compared to the previous quarter. This performance was mainly due to domestic demand, which slowed its year-over-year growth by 1.78 p.p. compared to 4Q18, to 1.73%. In the labor market, the unemployment rate increased by 2.06 p.p. with respect to 4Q18, reaching 8.15%. The year-over-year growth rate of employment creation in Peru slowed by 1.02 p.p. from the previous quarter to 0.59%. The Peruvian Sol appreciated against the U.S. dollar in comparison with 4Q18, to an exchange rate of 3.32 S/./$. The inflation rate increased in 1Q19 to 2.13%.

Macroeconomic overview

  • The year-over-year growth rate of the Peruvian GDP registered a deceleration of 2.41 p.p. in 1Q19 compared to 4Q18, reaching a rate of 2.28% in 1Q19.
  • This slowdown in GDP growth was mainly due to domestic demand, which slowed its year-over-year growth by 1.78 p.p. with respect to 4Q18, to 1.73%. This was caused by lower growths in investment, private consumption and public consumption.
  • On the labor market, the unemployment rate stood at 8.15%, an increase of 2.06 p.p. over 4Q18. The year-over-year growth rate of employment in Peru slowed by 1.02 p.p. from the previous quarter to 0.59%.
  • The average exchange rate of the Peruvian nuevo sol against the U.S. dollar was reduced in the first quarter of the year with respect to the previous quarter, to 3.32 S/./$, which represented an appreciation of 0.04 nuevos soles per dollar.
  • Inflation rose in 1Q19 to 2.13%, 0.06 p.p. higher than in 4Q18.

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.