Peru’s Economy Accelerates Despite Global Slowdown

Peru’s economy posted strong growth in July, a sign that the global economic crisis hasn’t had a major impact on the Andean country.

In July, Peru’s gross domestic product gained 7.21 percent, the government said over the weekend. Peru posted its strongest rate of growth so far this year in July, while other emerging-market countries in Latin America are starting to feel the impact of a slowdown in the United States and China, as well as the ongoing economic crisis in the Eurozone.

Peru’s growth has been buoyed by robust domestic demand, led by activity in the construction sector.

The construction sector gained 21.5 percent in July, leading to growth of 15.7 percent in the first seven months of 2012, Peru’s National Statistics and Information Bureua, INEI, said.

Inteligo, a Peruvian brokerage, said it expects construction to continue posting strong growth. “The construction sector will continue to register a vigorous performance over the coming months, boosted by higher private investment,” Inteligo said.

Other sectors that grew in July were manufacturing, which was up 4.78 percent, as well as electricity and water, which gained 5.7 percent.

The finance and insurance sectors gained 12.98 percent, and transportation and communications activity rose 6.82 percent.

Last week, Peru’s Central Bank rose its forecast for Peru’s full-year 2012 economic growth to 6 percent, from a previous expectation of 5.8 percent.

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