Peruvian economy fell 0.45% in the first half of 2023

During the first semester of 2023, he Domestic Gross Product (GDP) experienced a decrease of 0.45%. This contraction is mainly driven by the underperformance in the sectors of construction, manufacturingas well as agricultural and fishingaccording to data provided by the National Institute of Statistics and Informatics (INEI).

Thus, in the first six months of the year, he manufacturing and construction sectorwhich together represent close to 20% of national production, fell 6.09% and 8.97%, respectively. While the agricultural item fell -3.37%; The same occurred in telecommunications and other information services, with -7.18%; and fishing, which led the contraction with a drop of -31.65%.

In the equivalent period, the contraction was attenuated by the mining and hydrocarbon fields, which grew 9.78%; as well as commerce (2.68%), transportation (1.28%), among others.

Performance of the economy in June

National production fell 0.56% in June 2023, explained by the contractive development of the agricultural, fishing, manufacturing, construction, telecommunications and financial sectors. However, this behavior was partially offset by the expansion of mining and hydrocarbons; the growth of electricity, gas and water; trade; transport, storage and courier; services provided to companies and other services, according to the INEI.

In the sixth month of the year, the production of manufacturing sector it decreased by 14.64% due to the low performance of the primary manufacturing subsector (-29.96%) and the non-primary manufacturing subsector (-8.61%). In the primary manufacturing subsector, there was less activity in the processing and preservation of fish (-78.3%), manufacturing of primary precious metal products (-3.8%) and sugar processing (-21.5% ).

At the same time, he construction sector decreased by 4.12%, associated with lower internal consumption of cement (-10.58%); while the physical progress of public works increased (18.11%). The behavior of the internal consumption of cement was related to the lower dynamism of private works and self-construction, in an environment of adverse factors such as the weather and conservative expectations about the social panorama, as well as a slow recovery in the real estate market.

In addition, he agricultural sector decreased by 1.45% as a result of the drop in the agricultural subsector by -1.87%, due to lower production volumes of oregano (-55.8%), paddy rice (-22.5%), orange (-20.0%), cocoa (-9.0%), olives (-8.5 %), sugar cane (-6.8%) and coffee (-1.9%); influenced by lower planting levels of the main crops, coupled with unfavorable weather conditions, due to the occurrence of the El Niño Costero phenomenon. For his part, he fishing sector registered a drop of 68.93%.

In contrast, the mining sector and hydrocarbons grew by 15.95% due to the expansion of metal mining activity by 19.03%due to the greater volume produced of copper (22.7%), zinc (31.5%), molybdenum (13.2%) and iron (13.0%), mainly.

The sector electricity, gas and water grew 4.49% due to the greater generation of electric power by 4.88%, gas distribution by 5.78% and water production by 1.48%. The performance of the electricity subsector was based on the greater generation of thermoelectric energy (28.5%) and non-conventional renewable energy (22.7%); meanwhile, the generation of hydraulic power fell (-20.0%).