Weekly Report - 27 August 2020 (WR-20-34)

PERU | Record GDP contraction. Peru’s GDP declined by an unprecedented 30.2% year-on-year in the second quarter of 2020, Peru’s national statistics institute (Inei) announced on 20 August, with the country now officially in recession after recording a 3.4% contraction in the previous quarter. The steep decline is due to measures to contain the coronavirus (Covid-19) pandemic, which have forced the suspension of much economic activity and the closing of national borders. The same figures show a 27.7% fall in domestic consumption year-on-year, with a 57.7% decline in gross fixed investment as construction projects were paused and orders cancelled. A 39.6% fall in employment was reflected in a 22.1% decline in household consumer spending, while government consumption fell by 3.2%.

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