World Economy

Peru Beats Estimates With 3.8% Growth

Peru Beats Estimates With 3.8% GrowthPeru Beats Estimates With 3.8% Growth

 Peru’s economy grew by a faster-than-expected 3.87% in June from a year earlier, a strong uptick from May and one of the fastest monthly expansions of the past year, state statistics agency Inei said.

A Reuters poll had forecast 3% year-on-year expansion in June. The central bank had said the reading would probably come in above 3%.

The official figure could bolster business and consumer confidence, a lift the government says is needed to consolidate a fragile recovery.

Peru’s mining-fueled economy has slowed sharply in the past 1-1/2 years as weak mineral prices have curbed investment.

The economy expanded by 3% in the second quarter of 2015 from the year-earlier period, and by 2.42% in the first half, Inei said. The annual growth rate rose to 1.92% in June.

Mining led growth in June with a 14.15% expansion as output from new copper mines and small-scale gold miners rose.

Retail and wholesale sales were up 4.1% and agriculture 8.1%. But construction fell 3.15%, fishing, 29.6% and manufacturing 2.89%, official data showed.

The economy grew by a seasonally adjusted 1.1% rate in June from May, when it expanded by just 1.22% year-on-year, Inei said.

In 2014 the economy expanded by 2.35%, half as fast as in recent years when growth topped 5%.

The government and central bank have said the economy should rebound in the second half of the year on public spending, and should end the year with growth of close to 4%. Many private analysts have said that figure is too optimistic.