Consumption in Peru

Peru Consumption | Economic News & Forecasts

Peru - Consumption

GDP growth picks up notably in Q2

Economic growth accelerated considerably in the second quarter, coming in at 5.4% in annual terms. The reading marked the fastest pace of growth since Q4 2013 and was up from 3.1% in the first quarter. The second-quarter acceleration was primarily driven by stronger domestic demand.

Fixed investment expanded a stellar 8.6% in annual terms in Q2 on the back of rising private and public investment, picking up pace from Q1’s solid 5.4% increase. Private investment rose at the fastest clip in five years, propelled by improving terms of trade—particularly of mineral exports—and increasing business confidence. Public investment also gained steam, buoyed largely by a ramp up in spending on road infrastructure.

Similarly, private consumption expanded a robust 4.5% year-on-year, accelerating from the 3.2% increase recorded in Q1. Household spending was underpinned by healthy credit growth, rising employment and stronger consumer confidence. Meanwhile, government consumption grew a soft 1.1% year-on-year in Q2, moderating from Q1’s 3.2% rise.

On the external front, the sector’s contribution to growth improved from the previous quarter; nevertheless, it remained negative. Exports climbed 3.2% in year-on-year terms in Q2, broadly unchanged from Q1’s 3.1% rise. Reflecting still-healthy demand for capital goods, imports increased 6.3% in Q2, slightly below the 7.4% expansion logged in Q1. As a result, the external sector’s contribution to growth improved from minus 1.0 percentage point in Q1 to minus 0.6 percentage points in Q2.

Economic growth is expected to remain robust in the coming quarters, underpinned by solid domestic demand. The recent minimum wage hike, modest inflation and rising employment are seen supporting private consumption, while low borrowing costs and healthy credit growth should propel capital spending ahead. The main downside risk to the outlook stems from political instability, however.

Peru GDP Forecast

Panelists surveyed for this month’s LatinFocus report expect GDP to expand 3.8% in 2018, which is up 0.2 percentage points from last month’s projection. For 2019, the panel also sees the economy growing 3.8%.

Peru - Consumption Data

2013  2014  2015  2016  2017  
Consumption (annual variation in %)5.9  4.2  4.9  2.7  2.3  

Sample Report

5 years of economic forecasts for more than 30 economic indicators.


Peru Facts

Bond Yield5.26-0.60 %Sep 20
Exchange Rate3.30-0.06 %Sep 20
Stock Market19,488-0.23 %Sep 20

Sample Report

Get a sample report showing all the data and analysis covered in our Regional, Country and Commodities reports.


Start Your Free Trial

Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.

Sign Up

Economic News

  • Peru: Central Bank keeps policy rate unchanged at its September meeting

    September 18, 2018

    At its 13 September monetary policy meeting, the Central Bank of Peru (BCRP) decided to keep the policy interest rate unchanged at an eight-year low of 2.75%, matching market expectations.

    Read more

  • Peru: Economic activity picks up in July

    September 17, 2018

    Economic activity expanded 2.3% year-on-year in July, above June’s 2.0% increase but still well below April’s annual growth rate of 7.8%, which was a five-year high.

    Read more

  • Peru: Business confidence slips in August

    September 11, 2018

    The business confidence indicator edged down to 58.5 in August from July’s 59.0, remaining comfortablyabove the 50-point threshold that separates optimism from pessimism. Driving the small decrease in business sentiment was a deterioration in expectations on the near-future, while expectations on the medium-term improved.

    Read more

  • Peru: Trade surplus widens in July on higher commodity prices

    September 6, 2018

    Peru’s trade balance recorded a USD 489 million surplus in July, down considerably from June’s USD 1,284 million surplus but more than double the USD 230 million surplus recorded in July 2017. Growth in exports remained strong in July, coming in at 17.3% year-on-year following June’s hefty 20.7% increase.

    Read more

  • Peru: Inflation drops in August

    September 3, 2018

    Consumer prices in Metropolitan Lima increased 0.13% month-on-month in August, below July’s 0.38% rise.

    Read more

Search form