Peru GDP growth less than expected

Earlier this week, the Peruvian National Institute of Statistics and Information reported that Peruvian GDP grew by 3.41% in January over the previous year. Unfortunately, this meant that the economy grew less than originally expected, as analysts polled by Reuters predicted a 4 percent year-on-year GDP growth, in light of the unexpected 6.39% growth in December. Both the manufacturing and construction industries actually contracted in the last year, but strong performance in the agricultural, fishing, and mining sectors drove the country’s economic growth.

Barrons noted that, despite the volatility in these monthly reports, the Peruvian stock market is still quite healthy. The article attributed this to expectations that Keiko Fujimori will be elected president in April. Fujimori received her MBA at Columbia Business School, and is widely expected to continue with Peru’s current economic policies.

Argus Media provided more detailed analysis regarding the Peruvian presidential election, and on Fujimori’s various paths to victory in the presidential election. Argus also discussed Fujimori’s extensive government plan, which proposes an ambitious energy plan that focuses heavily on natural gas. For example, the plan supports radically transforming state-run Petro-Perú.