Peru’s economy returned to growth in March after two consecutive months of contractions, but expanded much less than analysts had forecast.
(Bloomberg) — Peru’s economy returned to growth in March after two consecutive months of contractions, but expanded much less than analysts had forecast.
The country’s economic activity rose by 0.22% from the same time last year, according to statistics agency INEI. The median forecast of nine analysts surveyed by Bloomberg expected growth of 1.3%. Peru’s finance ministry and central bank had separately forecast a return to growth in March.
The economy contracted 0.43% in the first quarter of the year, INEI said.
Read More: Peru’s Economy Contracts for Second Month, Pressured by Protests
The quarterly contraction and slow growth in March demonstrated the significant impact of massive protests that wrecked the economy earlier in the year. The effects of the anti-government demonstrations lingered while Peru also faced flooding in the country’s northern region due to warming ocean waters, a phenomenon that may continue throughout the year and further pressure the economy.
Peru’s central bank has held its benchmark interest rate at 7.75% for the past four months, citing the unrest in its initial decision to halt rate increases.
Unemployment in capital Lima fell to 7.1% in the past three months from 7.5%, INEI said.
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