The projections of economic growth for the end of the year have been reduced from 2.5% to 1.1%, according to information from the Multiannual Macroeconomic Framework (MMM) 2024-2027, prepared by the Ministry of Economy and Finance (MEF).
Among the main reasons for this reduction are the protests against the government of Dina Boluarte and the weather events that have occurred in recent months. Thus, both private investment, which would fall by 4.5%, and the negative performance in four sectors, have affected the rise in GDP. Next, find out which are the items that have been affected the most so far this year.
What sectors will close 2023 in negative?
The sector that has had the lowest performance has been fishing, which will fall by -27.9%. This is mainly due to the cancellation of the first anchovy fishing season in the north-central zone, the first suspension in 10 years.
“Social conflicts and weather phenomena have subtracted 2 points of growth in the first half of the year. There was a historic drop in fishing, which affected primary manufacturing, along with a water deficit. Added to that was Cyclone Yaku,” said Alex Contreras, head of the MEF, during the MMM 2024-2027 exhibition on Tuesday, August 29.
Likewise, Cyclone Yaku and the El Niño phenomenon, which went from a weak FEN in February to a strong FEN in April, caused damage to the agricultural productionwhich will fall by -0.5%.
For his part, he manufacturing sector it will also be reduced by -2.3%. In particular, the primary sector is the one that will decrease the most (-4.2%), due to the impact on fish processing after the interruption of the first fishing season. On the other hand, the non-primary sector will decrease by -1.8%.
Finally, the second most affected sector is the the construction, which, by the end of 2023, will register a decrease of -3.4%. This item has shown a downward trend in recent months. In July it experienced a 4.9% drop, due to the negative performance in cement consumption, a trend that has been maintained since September 2022, according to the Peruvian Chamber of Construction (Capeco).
Source: Larepublica
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