The head of the Ministry of Economy and Finance (MEF), Alex Contreras, stated, during his presentation at the Budget Commission of the Congress of the Republic, that the economy in the second quarter of the year will be affected by two factors: the collapse of the agricultural sector due to climate change, and the absence of the first anchovy fishing season that will impact the fishing sector.
“The second quarter is going to be affected by two central factors: the collapse of agriculture, due to the fact that last year there were water restrictions and decisions were not made on time, (…) if you don’t plant, you don’t harvest and that lack of sowings last year is being reflected in a very significant drop in agriculture. Agricultural GDP fell 20%, the biggest drop since we have records”exposed Contreras.
According to the minister’s report, from August to November, some main products such as potatoes (-18.6%), corn (-23.2%), quinoa (34.4%), wheat (-49.9%), %) fell well below previous years. Likewise, some 26 crops out of a total of 28 registered falls compared to the previous campaign (2021/2022).
Cyclone Yaku and the phenomenon of The boy they affected almost 42,000 hectares of crops and 39,000 hectares are irrecoverable. Regarding the livestock sector, 286,000 animals were affected and more than 44,000 were lost, said the minister. In addition, he added that the Ministry of Agriculture and Irrigation (Midagri) is evaluating measures to support the affected sectors.
The second factor that will have an impact on the economy in the second quarter is the fishing sector, since there has not been a first anchovy fishing season because the sea temperature is higher than it should be, which also affects the primary manufacturing.
“Nevertheless, what we expect is a more significant recovery in the third and fourth quarters, precisely because of the measures that we have been able to implement, approved thanks to the support of this commission, and thanks to the support of the Congress of the Republic. The main reactivating element at the moment is public investment,” said the minister.
Source: Larepublica
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