The Peruvian economy contracted 9.8% in August compared to the same month last year, the smallest monthly drop amid the recession caused by the covid-19 pandemic, the government reported Thursday.
The fall in Gross Domestic Product (GDP) “of 9.82% in August is associated with the implementation of the third phase of economic reactivation as of July,” said the National Institute of Statistics and Information (INEI).
GDP decreased 15.66% from January to August 2020 over the same period of the previous year, and 9.63% in the last 12 months, from September 2019 to August 2020.
The contraction in August is the mildest since the country declared a health emergency in March.
The INEI explained that the fall in August was due to lower production in most sectors, such as accommodation and restaurants, manufacturing, mining and hydrocarbons, transportation and commerce.
The mining sector, one of the engines of the Peruvian economy, is still in the doldrums and fell 11.18%, while the agricultural sector fell 6.58% and fishing 6.46%.
Manufacturing activity also continues not to take off to pre-pandemic levels and contracted by 12.09%.
Transport continues at deficit levels (-27.18%) and trade fell 8.12%, a sign that consumption is one of the victims of the pandemic that has left more than 2.5 million Peruvians without formal employment .
Construction decreased 6.50%, despite the fact that it is one of the activities that was gradually reactivated as of July, when Peru began to distract the population.
The accommodation and restaurants sector still accumulates huge losses with a fall of 60.95%, affected by the absence of foreign tourists and the health restrictions that prevent them from serving at full capacity.
The items on the rise are financial (19.74%) and telecommunications (5.13%).
The collapse of the economy was caused by semi-paralysis between mid-March and June, in which it operated at only 44% of its capacity and plunged the country into recession.
Peru’s GDP sank 30.2% in the second quarter and 17.37% in the first half
The Central Bank forecasts a 12.5% drop in GDP for 2020. GDP had advanced 2.16% in 2019.
Peru registers more than 33,500 deaths from coronavirus and almost 857,000 confirmed cases.