Peruvian economy grows at weak pace with 0.31% in April due to decline in six sectors | GDP | Gross Domestic Product | National Product | INEI | Construction | Fishing Production | Agricultural | economy

The The Peruvian Economy It continues with weaker growth after a start to the year affected by the impact of the coastal El Niño phenomenon and social conflicts. In April 2023, according to the National Institute of Statistics and Informatics, the national product increased by only 0.31% compared to the same month of the previous year.Here)

Sectors performing favorably in the fourth month were: Mining and Hydrocarbons; Accommodation and restaurants; electricity, gas and water; trade; and transportation, storage and courier. However, six important items are subtracted from the overall results, namely agriculture, fishing, construction, telecommunications, manufacturing and finance..

read more: The Peruvian economy is losing ground with its peers in the region

With this result, the first quarter was negative: in the January-April period of this year, The country’s economy shrank by 0.24%.. In the last 12 months (May 2022-April 2023), it has increased by only 1.38%, INEI noted.

Agriculture

He Agriculture sector decreased by 14.21%. Minimum agricultural production (-20.24%) with crops like quinoa (-81.8%), olive (-42.3%), amylase maize (-36.5%), potato (-35.1%), dull yellow maize (-22.4%) ), sugarcane (-21.8%) and alfalfa (-21.1%).

This was explained by lower plantings of major crops (-12.6%). Added to this was unfavorable weather.

“On the coast, temperatures above their average values, constant and intense rainfall prevailed, associated with the phenomenon of coastal El Niño; in the southern Sierra, temperatures were recorded below their normal climatic conditions, which affected crops such as potatoes, quinoa and fodder. Described INEI.

The livestock sub-sector shrank by 0.80% due to lower production of eggs (-1.5%), poultry (-1.3%), fresh milk (-0.7%) and sheep (-0.4%). In the case of the egg, this was reflected in its price.

read more: Household spending remained subdued and showed weakness in May

Fishing

He Fisheries sector decreased by 2.57%. Marine-based species (-6.60%) are less extracted, mainly for direct human consumption (-1.57%), canned foods (-30.5%), frozen (-5.2%) and cured for preparation (-2.4%).

Fishing for indirect human consumption declined (Anchovy resource for fishmeal and fish oil) was reported to have landed at 6,444 tonnes compared to 26,114 tonnes in April 2022, a decrease of 75.3%. The sea surface temperature, which limited the progress of the first fishing season of the resource in the southern zone of the coast.

As you may remember, usually the First fishing season Anchovies start in April in the north-central part of the country. however, This year, amid unfavorable weather conditions, it has not yet been given the green light to start.

Continental native fisheries increased by 14.15% due to increased extraction of species for fresh and frozen consumption.

Construction

He The construction sector shrank by 5.12%, cement (-16.10%) reflects the reduction in internal consumption; However, the physical progress of public works (30.72%) grew.

Internal cement consumption efficiency is linked to reduction of self-construction work and limited progress of private works, added to climatic factors such as heavy and persistent rainfall, which blocked various transport routes, particularly in the north of the country.

The activity of physical progress of works was observed at three levels: national (52%), regional (33.2%) and local (18%), development, repair and construction of buildings such as health centres, education. centres, community centres, road projects, preventive works against hazards and disasters, as well as expansion of the health system.

read more: IMF advises BCR to avoid “premature decision” on interest rate tightening

Production

In April, manufacturing activity declined by 3.84% due to lower activity in the non-primary sub-sector (-7.74%).

However, the activity of the primary sub-division grew (11.07%). The behavior of the non-primary sub-sector is affected by the low productivity of the consumer goods industry (-8.96%) and the intermediate goods industry (-7.59%); However, production of capital goods industry increased by 2.54%.

The outcome of the primary sub-sector was affected by oil refining products (40.79%), manufacture of primary products of precious metals (7.99%) and fish processing and preservation (29.30%).

Mining and Hydrocarbons

He Mining and Hydrocarbon sector grew by 17.41% By energy of metal mining activity at 20.86%, it is associated with the highest amounts produced by copper (31.4%), zinc (31.4%), lead (9.1%), iron (2.9%) and silver (0.2%).

Meanwhile, production of molybdenum (-2.9%), gold (-1.4%) and tin (-0.9%) declined.

In addition, the production of the hydrocarbon sub-sector decreased by 0.34%, which was explained by the lower exploitation of natural gas liquids (-5.3%). However, production of natural gas (6.1%) and crude oil (1.6%) increased.

Trade

He Commerce sector grew by 3.18% (3.17%) of total sales due to higher commercialization of telephone equipment, portable radio communication and semiconductor equipment, machinery and equipment, mainly due to demand for refrigeration equipment.

Likewise, the increase in retail sales (3.37%) was related to the commercialization of new products, including security products, electric and optical motors, higher demand for pharmaceutical products, faucets, and higher sales at self-service stores. Similarly, sales and repair of vehicles (2.56%) increased.

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