Peru economy grows 7.49pc in August

LIMA: Peru's economy grew a stronger-than-expected 7.49 percent in August from the same month a year ago as key export sectors expanded and recovering investment boosted construction, official data showed on Monday.

Economists surveyed by Reuters had expected growth of 6.49 percent. The economy grew 6.52 percent in July, when it snapped out of a five-month deceleration rut. Growth was 0.8 percent in August compared to July.

"The upward trend in economic activity was driven by internal and external demand the evolution of external demand in August reflects the growth of real exports," the national statistics agency said in a report.

The mining sector, which accounts for 60 percent of Peru's exports, expanded 3.19 percent after falling in June and July.

Construction grew 6.66 percent after declining for several months earlier this year during a presidential election as businesses were unsure leftist Ollanta Humala would keep free-market reforms intact if elected.

Since his election in June, Humala has gained confidence by appointing a conservative economic team. His government has attracted some $15 billion in foreign investment.

"This recuperation suggests investment is returning," said Pedro Tuesta, an analyst at 4Cast in Washington."

Copyright Reuters, 2011