Bloomberg Line – Peruvian economy shrinks again. Production has declined by 0.63% in August this year as compared to the same month of the previous yearThe National Institute of Statistics and Information (INEI) reported this Sunday.
The data beat the median forecast in a Bloomberg survey of August, which had expected a 0.2% decline. A fall in the country’s economic output has been reported for the fourth consecutive month.
According to INEI, the construction, agriculture, finance, manufacturing, telecommunications, transport, accommodation and restaurant sectors recorded average performance due to lower output.
In parallel, mining and hydrocarbons, trading and fisheries sectors; electricity, gas and water; Business services and other, recorded increase.
So far in 2023, gross domestic product (GDP) has recorded a contraction of 0.58%., according to INEI. However, it has grown by 0.25% in the last 12 months.
The economy was hit by the worst social unrest in early 2023, followed by the El Niño climate event, which negatively affected crop fields and its fish feed industry.
The International Monetary Fund (IMF) estimates growth for the Peruvian economy at 1.1% for 2023 and 2.7% next year.