The economy grew 0.5% in the second quarter of this year versus the first.

Despite above-target inflation, which has kept interest rates at 9.25%, the South American country has notched strong domestic consumption this year, pushing annual growth in the first quarter to 2.7%.

Analysts polled by Reuters have predicted full-year growth of 2.6% for this year, while the central bank’s technical team predicts slightly higher expansion of 2.7%.

But analysts have warned inflation risks and a worsening fiscal situation would limit further growth and slow the bank’s interest rate cuts. The bank has so far cut its rate only once this year.

Growth between April and June was driven by the arts and entertainment sector, which expanded 7.5%, trade, which grew 5.6%, and the agriculture sector, which registered growth of 3.8%.

However, the mining and oil sector slipped 10.2%, with construction also falling 3.5%.