The Central Reserve Bank of Peru (BCRP) detailed that during the first quarter of 2023 private investment fell 12%, thus accumulating three consecutive negative quarters (-0.5%, -4.1% and -0.4%, respectively).
The result is explained by the contraction in real terms of mining investment (-23.2%) and that of other sectors (-11%), according to its recent Study Notes.
The decrease in investment is due to stoppages and lower business confidence as a consequence of social conflicts, as well as the absence of new mining megaprojects.
They also recalled that in figures from the Ministry of Energy and Mines (Minem), mining investment was US$835 million, US$198 million less than the same period last year.
The decrease in year-on-year investment was mainly due to lower disbursements in processing plant, infrastructure and development and preparation; on the other hand, investment in non-mining sectors was due to the lower volume of imports of capital goods (-10.7%) and domestic consumption of cement (-15.4%).
Public investment also fell 1.0% during the first quarter due to lower disbursements from subnational governments (-18.4%), a “usually observed” scenario in the first year of the mandate of the new authorities.
Source: Larepublica
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