No recovery. Gross domestic production (GDP) added three consecutive months in negative and registered a contraction of 1.29% in July 2023 compared to the same month of the previous yearreported the National Institute of Statistics and Informatics (INEI).
It is worth pointing out that of the first seven months of the year, only in two months did the economy report growth, while in five it had a negative performance.
The entity indicated that the result was driven by the unfavorable evolution of six economic activities, a performance that was attenuated by the productive increase in the Mining and Hydrocarbons sectors; Electricity, Gas and Water; Trade; Transportation, Storage and Courier; Accommodation and Restaurants, Services Provided to Companies and Other Services.
Among the sectors that fell were Agriculture, Fishing, Manufacturing, Construction, Telecommunications and Finance. Likewise, it was specified that in the period January-July 2023, the country’s economy decreased by 0.58%; However, in the last 12 months (August 2022-July 2023) it accumulated a growth of 0.48%.
The production agriculture decreased by 0.69% as a result of the agricultural (-0.72%) and livestock (-0.64%) subsectors. The performance of the agricultural subsector was influenced by the lower production volumes of green grain peas (-24.0%), asparagus (-22.9%), paddy rice (-22.0%), dry grain beans (-18.0%), .3%), onion (-13.8%), wheat (-8.3%) and starchy corn (-2.9%), given the reduced planting of the main crops and anomalous weather conditions recorded during the period of crop development.
For its part, Manufacturing decreased by 13.89% explained by the lower activity of the non-primary (-12.43%) and primary (-18.24%) manufacturing subsectors. The behavior of the non-primary subsector was influenced by the lower production of the consumer goods industry (-13.18%) and intermediate goods industry (-12.12%), with the exception of the capital goods industry which showed an increase (32.11%).
The Construction sector fell by 8.80%, reflected in the reduction of internal cement consumption (-6.10%) and the physical progress of public works (-16.64%). The unfavorable performance of domestic cement consumption was due to the lower dynamism of private works and self-construction in the face of a slow recovery in the real estate market.
The hardest hit sector was fishing, which contracted by 47.94%, explained by the lower landing of maritime origin (-54.73%), of species for indirect human consumption (anchovy for fishmeal and fish oil), extracting 43 tons that , compared to 438,032 tons in July 2022, meant a reduction of 437,989 tons.
In contrast, during July 2023, the Mining and Hydrocarbons sector grew by 11.38% due to the expansion of metallic mining activity (13.35%) due to the greater volume of production of molybdenum (24.7%), copper ( 18.1%) and zinc (8.6%), among the main ones. However, the production of the hydrocarbon subsector decreased by 1.64%, reflected in the lower level of exploitation of natural gas liquids (-13.8%) and crude oil (-7.2%); while, natural gas increased (26.0%).
Source: Larepublica
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