Peruvian Economy | After six months 0.29% will grow, but there are still six divisions in the “red” | GDP | INEI | Gross Domestic Product | Fishing mining | Construction | Trade | Restaurants | Accommodation | Hydrocarbons | economy

The The Peruvian Economy This paves the way for potential recovery after six months in the “red”. In November 2023, the national product increased by 0.29%, compared to the same month in 2022, according to the National Institute of Statistics and Information (Here)

The positive result in November was driven by the sectors: Agriculture; Fishing; Mining and Hydrocarbons; Electricity, gas and water; Trade; Transportation, Storage and messaging; Government services and other services.

Instead, they showed unfavorable behavior, fields Production; Construction; Accommodation and restaurants; telecommunications and other information services; Finance and services provided to companies.

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“During the month under analysis, demand manifested in exports of goods increased by 10.72% due to higher exports of traditional and non-traditional goods.”, the INEI report pointed out.

The November result was not enough to see a positive overall result. In the first 11 months of last year, Gross Domestic Product (PPIDecreased by 0.57% In the last 12 months, December 2022-November 2023, it has decreased by 0.42%.

These results only confirm what various analysts and consulting firms already expected: the Peruvian economy will close in 2023 with a 0.5% contraction.

Agriculture

According to INEI, the Department of Agriculture 1.19% increase due to agricultural activity (2.44%); Meanwhile, the Livestock production (-0.60%).

Among the agricultural products that contributed to this result, pepper (98.34%), watermelon (92.92%), artichoke (66.59%), onion (36.06%), grapes (27.6%), husked rice (22.9%) and hard yellow corn. (17.83%), giving the highest cultivated area.

On the other hand, livestock products that showed shrinking behavior were: chicken (-1.47%), goats (-1.45%), eggs (-1.27%) and fresh milk (-0.94%) were the main ones.

Fishing

Production Fisheries Department Compared to 311,499 tonnes in November, there was an increase of 60.96% due to higher extraction of marine species (68.90%) with a higher contribution from fishing for indirect human consumption (fishmeal and anchovies for fish oil). 2022. Anchovy landings corresponded to the second month of the second 2023 fishing season (North-Central Zone).

Likewise, the Fishing for direct human consumption grew by 3.38% Due to the high landing of species for consumption frozen (9.7%) and in a fresh state (2.7%); On the other hand, curative production (-57%) and canning production (-14%) decreased. On the other hand, fisheries of continental origin grew by 7.27%, which is related to more fisheries destined for fresh consumption.

Mining and Hydrocarbons

Mining and hydrocarbons increased by 8.04% due to expansion of metals mining activity by 10.60% due to higher production volume of copper (11.7%), molybdenum (19.5%) and gold (9.7%).

On the other hand, the hydrocarbon subsector declined by 7.98% due to lower exploitation levels of natural gas (-13.2%), natural gas liquids (-5.9%) and crude oil (-4.2%).

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Production

He Manufacturing sector The non-primary manufacturing sub-sector (-6.72%) declined by 0.51% due to lower performance; At the same time the primary manufacturing sub-sector grew (18.45%).

Because of this The non-primary sub-sector contributed to low output in the consumer goods sector (-7.07%) and intermediate goods industry (-6.91%); Conversely, capital goods industry growth (33.58%).

Positive performance of fish processing and preservation (56.8%), production of primary precious metal products (9%) and production of oil refining products (10.3%) contributed to the primary sub-sector result. However, the sugar manufacturing branch shrank (-2.9%); as well as meat production and preservation (-0.2%).

Electricity, gas and water

Electricity, gas and water increased by 0.69% due to electric power (0.61%), water generation (1.08%) and gas distribution (1.62%). The electricity sub-sector is driven by increased hydropower generation (24%) and non-conventional renewable energy (69.9%); On the other hand, the thermoelectric potential was reduced (-19.1%).

The positive result of the water sub-sector was contributed by EPS Grau (7.5%), Sedapal (2.2%), Seda Chimbote (1.9%) and Epsel (1.7%) to the largest volume of drinking water production. Gas supply grew due to higher exports to automotive natural gas marketing companies (9.4%) and companies (1.8%); Conversely, supply to electricity generators decreased (-1.6%).

Construction

Construction is one of the major employment generating sectors. It contracted by 8.05% on lower internal consumption of cement (-8.37%) and lower physical progress of public works (-7.80%). Low domestic consumption of cement is linked to low private investment in construction and self-construction.

The contraction of physical progress in public works at the local government level (-32%) was partially offset by investment at the national (36.9%) and regional (6.3%) levels. As a result, road infrastructure and basic service projects were affected. Meanwhile, construction of non-residential buildings and risk prevention work increased.

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Trade

He Department of Commerce Total sales (1.69%) increased by 1.30%, highlighting fuel sales; Due to the rotation of food, drinks and tobacco food products, carbonated drinks and water, due to the progress of summer and the Christmas campaign; machinery and equipment for the mining, construction and sanitation sectors; as well as to the health sector through public-private tenders and activities aimed at addressing the El Nino phenomenon.

Additionally, retail sales growth (1.73%) was witnessed in the largest sales of agrochemical, veterinary and optical products; Added high demand for fuel in pipelines and self-services; Computers and telecommunication equipment due to increase in tenders. Meanwhile, sales and repairs of vehicles declined (-3.77%) due to low demand.

Accommodation and restaurants

In November 2023, the accommodation and restaurants sector decreased by 0.03% due to the behavior of the restaurants sub-sector (-0.74%); However, the accommodation sub-sector grew (7.17%).

The result of the restaurant sub-sector was explained by the low number of customers in the establishments, low opening hours and the insecurity of citizens in different districts of the country, with the highest incidence in the northern region.

In the restaurant group (-1.22%), meat and grill establishments, tourist restaurants, cevicherias, chicken shops, cafe-restaurants were the most affected; among others. Likewise, beverage services declined (-0.58%).

Conversely, according to INEI data, the activities of other food services (0.78%) and catering services (2.36%) grew.