Peruvian July economic activity grows 12.94% over July 2020; year-to-date grows 19.68%

RIO DE JANEIRO, BRAZIL – Peru’s economic activity measured by production increased 12.94% in July over the same month of 2020, due to the recovery in almost all sectors, after overcoming the recession caused by the coronavirus pandemic, the government reported on Wednesday.

“In July this year, national production grew 12.94% compared to the similar month of the previous year, as a result of the positive performance of most economic sectors, except Fishing and Mining and Hydrocarbons,” said the National Institute of Statistics and Informatics (INEI) in a report.

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According to the result, Peruvian production -which allows calculating the GDP- increased from January to July by 19.68% compared to 2020.

The growth in the past 12 months was 8.52%, in line with market expectations that estimate a GDP increase of 10.5% for this year. In 2020, GDP contracted 11.12%, the worst performance in the last three decades.

The sectors that showed the greatest dynamism in July continued to be lodging and restaurants (124.20%), transportation (38.61%), construction (37.40%), and commerce (13.25%), among others.

Peruvian authorities indicated that fishing (-41.39%) and mining (-0.94%) were the only items with a negative balance in July.

The INEI recalled that in July 2020, national production was reduced by 11.71% over the same month of 2019 due to the partial suspension of activity in various sectors due to the covid-19 sanitary emergency.

Due to the coronavirus pandemic, Peru semi-paralyzed its economy for more than 100 days between March 15 and July 1, 2020, which resulted in a recession.