Peru economic growth slows to 2.43% in September

By Reuters News

- Peru's economy expanded 2.43% in September compared to the same month last year, data from the South American nation's INEI statistics agency showed on Sunday, slowing down from the prior month when the economy grew some 3.23%.

Growth was dragged down by the country's key mining and hydrocarbons industry, which shrank 6.32%, while the farming sector, which continued to be affected by the coastal El Niño weather pattern, also declined some 5.44%.

Copper output in the world's third-largest producer shrank 9.04%, INEI said, citing lower grades at major mining operations, while production of zinc, gold, silver and lead also fell.

Commercial and construction activities, however, logged strong growth, expanding 6.29% and 8.84% respectively.

The data comes as Peru's central bank looks to tame rising inflation, which last month logged its biggest monthly increase in over four years, driven by higher food and energy prices.

On Thursday, the bank hiked its benchmark interest rate by 25 basis points to 4.5%.

The publication also comes as Pope Leo, who spent some two decades as a missionary and bishop in Peru and holds Peruvian citizenship, comes towards the end of a South American tour which has drawn massive crowds and celebrations.

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