LatAm's worst President is about to get his trasero
served to him on a plate next mealtime
This is the link that takes you to the 33 page PDF published by Peru's INEI stats office this afternoon. Most level-headed commentators knew that Peru was slowing down, but these numbers are nothing short of shocking. Peru has hit a brick wall and its people are about to find out just how much their President has been hoodwinking them all.
I've spent a good hour poring over the numbers trying to find some saving grace. Construction is still holding up, but the real soft centres are the 7.45% drop in the manufacturing sector and the commerce sector, the key to understanding the internal demand economy, down 0.71%. I immediately recall the utter balderdash published by Fitch and S&P when they upped Peru to investment grade, as they both used the "strong internal economy breaking away from the traditional economic motors" kind of argument as centrepiece. Total lies.
Trickledown doesn't work, period. Bringing back Luis "world's luckiest economist" Carranza (luck's run out though) as some sort of half-assed economic supersub won't work, period. Telling people to "think positively" and assuring them that Peru is a Utopian oasis in the storm hasn't worked, period. And now going forward we'll see the difference in reaction between the prudent countries that have warned their citizens of the storm (e.g. Chile) and the irresponsible that used ostrich politics (e.g. Peru).
If the main Spanish language report is too heavy for you, check out this resumé in English from AP for the main points, or maybe this one from DJNW or perhaps this one from Reuters. And don't say I didn't try to warn you. We're all in the crapper on this one...said it before and I'll say it again. The only difference is the level of preparation that countries have done so far. Peru hasn't lifted a finger and now it will pay heavily for its mistake.