UPDATE 2-Peru's economic growth slows in March

(Adds background, jobless data)

By Maria Luisa Palomino

LIMA, May 15 (Reuters) - Peru's economy grew at its slowest in nearly a year in March, expanding 5.59 percent compared with a year earlier as contraction in fishing and agriculture offset strong construction activity.

The median forecast of analysts polled by Reuters was for growth of 6.35 percent, with forecasts ranging from 5.3 percent to 7.5 percent.

The March figure was the lowest growth rate since April last year, when the economy expanded 4.5 percent.

The government's National Statistics Institute (INEI), which released the data, said the figure appeared weak only because the corresponding figure a year ago -- 12.2 percent -- was so strong.

"It's a statistical question, but the economy grew significantly," INEI head Renan Quispe told a news conference.

The institute pointed out that March was the 69th consecutive month of economic growth in Peru.

It said the construction sector expanded 10.56 percent compared with March 2006 while the mining and minerals sector grew 2.33 percent after seven consecutive months of contraction.

Agricultural production eased 0.09 percent while the fall in the fishing sector was 17.09 percent.

With Tuesday's figure, the INEI said Peru's gross domestic product for the first quarter of 2007 expanded 7.46 percent, above the Economy Ministry's forecast of 7.2 percent. The ministry has forecast a pickup in growth in April and May.

Peru's economy grew 8 percent in 2006, its fastest in 11 years, due to robust domestic demand and rising mineral exports.

The INEI also revised its figure for February economic growth to 7.72 percent from a previous 7.43 percent.

It said GDP growth for the 12-month period to the end of March was 7.89 percent.

The INEI also released unemployment data on Tuesday, saying the jobless rate in the capital Lima in the February-April period was 9.0 percent of the work force.

In the same period of 2006, the jobless rate for the metropolitan area stood at 8.7 percent.