The Gross Domestic Product (GDP) of the Peru has experienced a decline of 0.5% in the first half of the year, according to the Institute of Economy and Business Development (Iedep) of the Lima Chamber of Commerce. In the regional panorama, Puno is in a critical situation and leads the decline at the national level.
Of the 24 departments of Peru (not counting Lima), they account for 54% of the national GDP. Fifteen of them show a decline and 12 have two consecutive quarters of contraction. Fist It is one of those departments, and according to the Iedep study, its negative economic performance is due to social protests and climatic adversities.
In the highland region, in the first quarter of the year, GDP experienced a decrease of -11.9%. The drop in the sixth month was even more pronounced, reaching -13.4%, according to statements by the head of Iedep, Óscar Chávez, to regional media. The most affected sector was agricultural, which contributes more than a quarter of its GDP, and climatic factors such as frost, water deficit and low harvest played an important role. This is followed by the mining and hydrocarbons, transportation and construction sectors.
The Iedep also points out that Puno is the department that is in the group with the highest level of povertyaffecting between 39.4% and 43.3% of its population, according to the results of 2022. These figures could increase at the end of this year.
Other regions affected by the economic fall are Tumbes (-5.5%), Áncash (-5.4%) and Tacna (-5.3%). Not counting Lima, Puno and the other three departments contribute 15.7% of the national GDP17.5% of formal employment and concentrate 12.2% of the total credit granted by the financial system.
On the other hand, there are 9 departments in which the GDP has grown in the first half of 2023. This group is led by Moquegua (46.1%) and Apurímac (14.1%). In the case of Moquegua, the start of operations of the Anglo American Quellaveco company in September 2022 has driven growth in the production copper and molybdenum.
To mitigate this adverse situation, the economist specialized in Public Management and former consultant to the Ministry of Economy and Finance (MEF), Wilber Cutipa Alejo, maintains that political authorities with responsiveness and knowledge in economics are required.
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
