(Bloomberg) -- Peru’s economy grew more than expected in August compared to a year earlier, as growth continues to be surprisingly robust following a recession in 2023.
The economy grew 3.53% compared to August of last year, higher than the 3.4% median estimate of 10 economists surveyed by Bloomberg. Compared to a month earlier the economy grew 0.64%. So far this year, the economy has grown 2.88%, the national statistics agency said.
The government has forecast that Peru’s gross domestic product will grow 3.2% in the year, but Finance Minister Jose Arista has suggested in recent weeks that the economy may beat those expectations. Growth has been boosted by higher public spending that has impacted Peru’s deficit, which rose to 4% of GDP in August, exceeding the legal limit of 2.8%.
Peru’s central bank most recently held rates at 5.25% as its chief economist said that the economy was growing strongly without the need of monetary policy support.
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