Peru’s gross domestic product expanded 1.24 percent in August, bringing growth in the first eight months of this year to just 2.8 percent.
Business daily Gestion said that the result in August was slightly above forecasts from private sector economists, who had expected growth of 1.15 percent. It was also above growth in July, which came in at 1.16 percent.
Still, the data shows that Peru’s economy remained weak in August as analysts say they still expect a rebound in growth next year.
The strongest sector in the month was finance and insurance, which expanded 12.32 percent. Telecommunications was up 5.65 percent, and agriculture increased 3.12 percent.
Activity contracted in the fishing sector, which declined 22 percent, and the mining and hydrocarbons sector, which was down 3.51 percent. Manufacturing fell 3.17 percent, while construction activity contracted 3.73 percent.
Canadian Scotiabank said in a report Wednesday that the current slowdown will continue during the remainder of this year, but growth will pick up in 2015 thanks to greater copper production and the start of works in large infrastructure projects.
“There are a series of positive factors for growth in 2015,” it said. “Mining production is definitely going to increase on new operations. As well, the country will enter into an important cycle in infrastructure investments.”
“Given that the contracts have already been awarded, the question isn’t if it will occur, but when.”