The Peruvian Economy Strengthened in Q2

Strong Mining and Service Sectors Drive Growth in Q2

Although the Peruvian manufacturing sector remained in trouble in Q2, the mining sector was able to post a relatively strong performance in June to help GDP perform better in Q2 than in Q1. The mining sector posted a growth rate of 10.3 percent in June and a first-half growth rate of 5.5 percent. The mining and hydrocarbons sector accounts for about 14.4 percent of Peruvian GDP. Manufacturing, on the other hand, continued its difficult year, contracting 2.9 percent in June and falling 2.6 percent during the first half of 2015. This sector represents about 16.5 percent of the overall Peruvian economy. The construction sector was also weak in June, falling 3.2 percent and by 8.0 percent during the first half of 2015.

Agricultural output was strong in June, posting a growth rate of 8.1 percent. This was much stronger than the 1.9 percent growth rate recorded during the first half of 2015. However, the largest contributor to growth, other than the mining and hydrocarbons sector, was the service sector, whose components remained very strong during June as well as during the first half of 2015.

Commerce, which represents about 10 percent of the Peruvian economy, grew 4.1 percent in June and 3.7 percent during the first half of 2015. Other services, representing about 15 percent of the economy, grew 4.9 percent in June and 4.6 percent during the first half of 2015. The strongest sector during June as well as during the first half of 2015 was the financial and insurance sector whose growth surged 10.5 percent in June and 10.3 percent during the first half of 2015, all compared to the same period a year earlier. The financial and insurance sector represents about 3.2 percent of the overall economy.