Peru economy grows in January below expectations

Peru's economy grew in January, the government's INEI statistics agency said on Friday, fueling hopes the country can emerge from a stubborn recession this year.

Gross domestic product (GDP) expanded 1.37% in January compared to the same month last year, when the Andean nation's economy was impacted by protests and social upheaval.

The positive figure, however, came in under the 1.70% growth forecast predicted by analysts polled by Reuters.

January's expansion was led by the construction sector, which grew 13.16%, as well as the critical mining and hydrocarbons sector, which was up 3.96%. Peru is the world's No. 2 copper producer.

The country's important fishing sector contracted 26.75%, hurt by a drop in anchovy volumes. Anchovy is critical in making fertilizer fishmeal, of which Peru is a top producer.