Peru Q3 growth accelerates as copper shines
Peru's GDP grew 4.4% in the third quarter as expansions in the mining, natural gas, electricity, telecom and fishing industries offset contractions in construction, crude oil and agriculture, the government said.
GDP grew 3.7% in the previous quarter, Peru's national statistics institute said in a report.
Q3 manufacturing grew 2.0% year-on-year as basic metallic industries gained 4.7%, the agency said. Metallic product fabrication dropped 4.3%, while non-metallic mining output contracted 2.8%.
Mining output rose 17.4% in the quarter from a year earlier as copper jumped 33.7%, followed by molybdenum (+55.2%), tin (+5.4%) and silver (+1.2%), the agency said. Iron ore production fell 6.5% following a 19-day strike at Shougang Hierro Perú, while zinc dropped 11% and gold slid 0.3%. The agency did not report statistics for other minerals.
By revenue, lead exports jumped 60%, while copper exports were up 37.5%, gold 31.6% and zinc 4.0%. Total exports rose 16.7%, while imports climbed 1.8% in the quarter.
Consumer demand rose 4.1% in the quarter and public spending was up 2.3%, the agency said. Construction activity contracted 3.6% amid a fall in investment in infrastructure by regional and local governments.
President Pedro Pablo Kuczynski, who took office on July 28, has pledged to fasttrack infrastructure projects totaling US$25bn in investment, as well as spurring investment in mining and energy projects.
"Although business indicators show a recovery in the third quarter, companies will still wait for a recovery of their sales in order to trigger new investment," Inteligo SAB analyst Luis Eduardo Falen wrote in a report. "In this sense, the final quarter of 2016 began with an economy that continues to struggle to bounce back. The tightening of public spending and the slow reactivation of private investment will extend the economic recovery."
Peru is the world's third largest copper, zinc and tin producer and fifth ranked in gold.
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