UPDATE 2-Peru's economy slowed to grow 2.37 pct in Oct - govt

lunes 15 de diciembre de 2014 11:55 GYT
 

(Adds breakdown of growth in October, context on slowdown and gold production)

By Teresa Cespedes

LIMA Dec 15 (Reuters) - Peru's economy grew 2.37 percent in October from the same month a year earlier on the first rise in gold output in more than a year and robust retail activity, the state statistics agency Inei said on Monday.

The official figure largely matched expectations for a 2.35 percent expansion on the year in a Reuters poll last week.

However, the pace was slower than September's 2.68 percent year-on-year growth and well under the 6.59 percent rate posted in October 2013.

Peru's economy has slowed sharply this year on weaker mining activity and ebbing private investment.

The economy grew 2.8 percent in the first 10 months of 2014 and 3.5 percent in the 12 months through October, Inei said. During a mining boom over the past decade, growth rates tended to top 6 percent.

In October, mining activity, which had fallen for several months in a row, rose by 0.2 percent on the year.

Gold production spiked 8.9 percent in October, the first rise in more than a year. A government crackdown on illegal mining and dwindling deposits at aging mines had curbed production over the past year.

In October, retail activity rose 4.15 percent and services to companies were up 6.75 percent, Inei said. Construction dropped 3.18 percent, manufacturing 3.07 percent, and fishing 9.70 percent.

Peru's Finance Minister said earlier on Monday growth in November would likely be slower than October's rate. (Reporting by Teresa Cespedes Writing by Mitra Taj; Editing by Jeffrey Benkoe and James Dalgleish)