REFILE-WRAPUP 1-Peru GDP growth speeds up, Lima jobless jumps

(Inserts dropped words 'was mining' in 12th paragraph)

By Walker Simon

LIMA, March 15 (Reuters) - Peru's economy grew a stronger-than-expected 9.2 percent annual rate in January, led by a jump in manufacturing, construction and commerce, offsetting a contraction in the key mining sector, the government said on Thursday.

However, the unemployment rate in Lima, Peru's capital, rose to a higher-than-forecast 9.5 percent in the December-to-February period from 9 percent between November and January and in the year-earlier December-to-February period.

The data, reported by the national statistics agency (INEI), surprised economists, topping their highest forecasts.

Primarily driving unemployment upward was a surge in people searching for work, encouraged by their prospects due to the strengthening economy, INEI Technical Director Jose Garcia told Reuters in a telephone interview.

The bulk of employment seekers were first-time job seekers, particularly students, he said. Housewives also were among those looking for jobs for the first time, noting joblessness was greater among women than men.

Last year, Peru's gross domestic product expanded 8 percent, its fastest rate in 11 years, rounding out five straight years of growth averaging above 5 percent -- the highest such multiyear rate since 1970, he said.

The January expansion of 9.2 percent, compared with a year earlier, was the fastest growth rate posted for that month in 11 years, the INEI said, adding that expansion was fueled by expanding domestic demand and exports.

January's growth was also faster than December's GDP growth of 8.9 percent, compared with a year earlier.

The January GDP growth topped forecasts of eight economists in a Reuters poll. Their predictions ranged from a low of 6.8 percent to a high of 8.2 percent with a median of 7.8 percent.

Sectors showing the strongest growth were the commercial sector, up 13.8 percent; manufacturing, up 11.5 percent and construction up 11 percent, all compared with a year earlier.

The INEI's Garcia explained that the commerce sector gauged the value added by services by wholesalers as well as retailers.

GOLD, COPPER, ZINC DRAGS MINING

The only sector to contract in January was mining, which declined 1.9 percent compared with a year earlier, led by a 22.5 percent fall in gold output, compared with a year earlier.

The decline was due to even a steeper fall in gold output at Yanacocha, South America's No. 1 gold mine majority owned by Denver-based Newmont (NEM.N). The INEI said Yanacocha accounts for nearly a third of the gold output in Peru, which is the world's No. 5 producer of the precious metal

Minerals-rich Peru says it is the No. 1 producer of silver, which rose in January compared with a year earlier. It is also the world's No. 3 producer of copper and zinc, the first which fell in January versus a year earlier and of zinc which rose versus a year earlier.

Minerals account for the majority of Peru's exports. For details on January metals output, see [nN15166642]

GROWING JOBLESS RANKS

The ranks of jobless in Lima jumped to 422,400 in the December-to-February period, versus 371,600 a year earlier and 396,300 in the November 2006 to January 2007 period.

The work force rose to 4.45 million in the December-to-February period, compared with 4.14 million a year earlier and 4.42 million in the November-to-January period.

Lima accounts for nearly a third of Peru's population and of the country's GDP, the INEI's Garcia said.

He said job growth in percentage terms was greater in some smaller Peruvian cities, with the strongest job creation in Trujillo and Ica, both on the Pacific coast.

Those two cities were benefiting from a boom in exports of farm goods, particularly asparagus. Peru is the No. 1 producer of fresh asparagus, economists say. (Additional reporting by by Maria Luisa Palomino)