LIMA, June 15 (Reuters) – Peru’s economy expanded 3.73% in April from a year earlier, data from the government’s INEI statistics agency showed on Monday, exceeding expectations as nearly all sectors posted growth.
April’s reading came above the 3.55% increase forecast by analysts polled by Reuters and compared with a 3.21% expansion in March.
The result was driven by strength in construction and trade, which rose 12.88% and 7.31% respectively, in line with recent months as domestic demand underpinned growth.
Fishing also posted gains during the month – despite recent warnings from the central bank that weather risks linked to the El Niño phenomenon could weigh on the sector – while electricity generation increased.
By contrast, the key mining and hydrocarbons sector shrank 3.24% from a year earlier, while the agriculture sector contracted 1.64%, according to INEI data.
The country is also grappling with political uncertainty following a razor-tight presidential runoff. The initial vote count has finished, but electoral authorities are now reviewing hundreds of thousands of contested ballots, with no winner yet declared and the final result expected to take weeks.
Despite years of political upheaval, the major copper-producing nation has long been one of the region’s most stable economies.
(Reporting by Marco Aquino and Aida Pelaez-Fernandez; Editing by Kylie Madry)