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LatinNews Daily - 16 February 2021

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In brief: Peru’s economy shrinks for the first time in decades

*Peru’s national statistics institute (Inei) has published its latest economic data, which shows that the country’s GDP fell by 11.12% in 2020 compared to the previous year. This is the first negative annual GDP growth rate reported by Peru in 22 years. The general fall in output was attributed to the impact of the coronavirus (Covid-19) pandemic. An Inei report notes that economic output levels began falling since March 2020, when the Peruvian government first imposed quarantine measures to try to contain the spread of Covid-19, until December 2020, when there was a marginal (0.51%) increase in output. But this was clearly not enough to offset the negative trend, leading Peru to record one of the biggest economic contractions in Latin America and its worst yearly GDP result since 1998, when it contracted by 0.39%.