Likewise, the components of private spending recorded better results than in the previous quarter, in a context of absence of social conflicts such as those observed in the first quarter of 2023, and a lower incidence of inflation.
Quarterly GDP recorded expansion for the first time since 2022, increasing by 1.4% year-on-year in the first quarter of 2024. The recovery is credited to domestic demand (2.1%), specifically the dynamism of private domestic demand and public investment, reported the Central Reserve Bank (BCRP).
The components of private spending recorded better results than in the previous quarter, in a context of absence of social conflicts such as those observed in the first quarter of 2023, and a lower incidence of inflation on real household income.
This favorable situation for private spending had a positive impact on the confidence of economic agents. Indicators of business expectations about the economy and its sectors in 3 and 12 months advanced in the quarter and ended the period in optimistic territory.
Greater household confidence, added to the increase in real income and employment, was reflected in higher foreign demand for non-durable consumer goods and a recovery in the dynamism of the commerce, accommodation and restaurant sectors. Both the recovery of business expectations and the higher terms of trade generated a slight growth in private investment.
In addition, public investment reinforced the recovery of economic activity by expanding by 39.9% year-on-year. This increase was the result of greater spending at all levels of government, mainly at regional and local levels.
For its part, the GDP for the first quarter of 2024, in seasonally adjusted terms, increased 0.5% compared to the previous quarter, highlighted the highest issuing entity.
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.
