During the first half of this year, the Peruvian economy was influenced by social conflicts and climatic events. These socio-environmental conditions played a decisive role in the 0.5% decrease in production nationwide, with an even more significant contraction in most departments.
According to the National Institute of Statistics and Informatics (INEI), in the first six months of 2023 the gross domestic production (GDP) of 15 departments of the country decreased. Puno led this list, which fell by 11.9%, followed by Tumbes (-5.5%), Áncash (-5.4%), Tacna (-5.3%) and Lambayeque, the latter with a variation of – 3.5% (see infographic).
Puno’s economy was affected mainly by the poor performance of the agricultural sector due to the lower cultivation of potatoes, alfalfa and quinoa. Construction, mining and telecommunications also fell.
Causes of recoil
The economist of the Development Studies Network (Redes), Mónica Muñoz-Nájar, identifies two groups of regions with economic problems.
The first includes Huancavelica, Tacna and Ayacucho, which have been declining for up to two years. He explains that in these cases, the causes are mainly structural, such as the contraction of mining activity and problems in agriculture due to the climate and lack of investment.
On the other hand, it mentions that there are regions that alternate between good and bad results, as is the case of Puno, Lambayeque and Áncash. He points out that in the first half of the year production was influenced by El Niño, which affected fishing, agriculture and manufacturing in these regions.
Finally, Muñoz-Nájar comments that to reverse the situation it is necessary to strengthen public investment and generate confidence in the private sector.
GDP grew in only nine departments
At the end of the first semester, the GDP of nine departments grew.
In this group, Moquegua stands out, which grew 46.1% and contributed 0.77 percentage points to the GDP.
The result was driven by the expansion of mining activity associated with the increased extraction of copper and molybdenum, due to the contribution of Anglo American Quellaveco.
Source: Larepublica
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