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Macroeconomic outlook report: Peru

Fourth quarter of 2019

During 4Q19, Peru's Gross Domestic Product grew at a year-over-year rate of 1.82%, decelerating compared to the previous quarter. This performance was mainly due to the poor behavior of internal demand. In the labor market, the unemployment rate increased with respect to 3T19, up to 6.10%. The year-over-year growth rate of employment creation in Peru accelerated when compared to the previous quarter to 0.60%. The Peruvian Sol depreciated against the dollar when compared to the previous quarter, at an exchange rate of 3.36 S/$. The inflation rate decreased in 4Q19 to 1.88%.

Macroeconomic overview

  • The year-over-year growth rate of the Peruvian GDP registered during 4Q19 a deceleration of 1.43 p.p. compared to 3Q19, to a rate of 1.82% in 4Q19.
  • This deceleration in GDP growth was mainly due to the internal demand, for which the year-on-year growth rate fell by 1.98 p.p. to a growth rate of 1.96%. The growth rate of exports experienced an acceleration of 0.76 p.p. reaching a rate of 1.32%, while imports fell by 1.10 p.p., registering a growth rate of 1.83%.
  • In the labor market, the unemployment rate stood at 6.10%, increasing by 0.35 p.p. from 3Q19. The year-on-year growth rate of employment in Peru accelerated by 0.37 p.p. from the previous quarter to 0.60%.
  • The average exchange rate of the Peruvian nuevo sol against the US dollar depreciated in the fourth quarter when compared to the one observed in the third quarter, with an exchange rate of 3.36 S/$.
  • The inflation rate decreased in 4Q19 to 1.88%, 0.12 percentage points lower than in 3Q19.

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

© GMS Management Solutions, S.L., 2020. 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.