(Bloomberg) — Peru’s economy shrank in August for a fourth month in a row, extending its recession as analysts begin to grapple with the possibility the economy may contract in full-year 2023.
Peru’s economy fell 0.63% in August compared to a year earlier, surprising economists who had been expecting a 0.2% contraction. The economy grew 0.8% compared the previous month, according to national statistics institute INEI.
Peru’s finance ministry has repeatedly promised economic recovery later in the year, only to have to slash its growth forecast, currently at 1.1% for 2023. Finance Minister Alex Contreras first said the economy was suffering only from temporary shocks caused by unrest and bad weather, but has since acknowledged the economy is still not recovering.
Peru was Latin America’s fastest growing major economy for much of this century but has now become an underperformer on the back of protracted political instability. Peruvian President Dina Boluarte has struggled to revive the economy, and her approval rating stands at just 16% according to Ipsos. Worse, Peru is expected to face the El Nino weather pattern in coming months, which could further upend its agricultural and fishing industries and drag growth.
Analysts have most recently revised their expectations for Peru. Bloomberg Economics now expects Peru’s economy to contract 0.1% in 2023, the first yearly contraction in 25 years outside of the pandemic.
Read More: PERU INSIGHT: Protracted Political Uncertainty Weighs on Outlook
“Growth in the 1H was weaker than we had expected and showed a larger drag from political instability on activity and domestic demand,” wrote Felipe Hernandez of Bloomberg Economics.
Two large Peruvian consultancies have also announced negative growth forecasts in recent days. Macroconsult sees the economy falling by 0.2% while the Peruvian Economics Institute (IPE) sees it falling by 0.3%.
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
