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LatinNews Daily - 24 August 2021

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In brief: Peru’s GDP grows, but remains below pre-pandemic levels

* Peru’s national statistics institute (Inei) has published the country’s latest GDP figures, revealing that the economy grew by 41.9% in the second quarter of 2021 compared to the same period last year, when Peru was deep in the throes of its coronavirus (Covid-19) epidemic. Inei attributed this growth to a 44.8% increase in domestic demand, largely driven by increases in government spending (14.3%) and in gross fixed investment (157.1%), particularly in the construction sector. In Q2 2021, all sectors grew year-on-year apart from the agriculture, forestry, fishing & hunting sector, which contracted by 0.2% - Inei attributed this to diminished productivity in the agricultural sub-sector. The sector showing the greatest year-on-year improvement was hotels & restaurants, which saw growth of 423.0%. Despite the yearly growth, Inei highlights that GDP in Q2 2021 still remains 0.4% below the pre-pandemic figures recorded in Q2 2019.