In the first quarter of 2020, the measures taken to contain the spread of covid-19 had a negative impact on Peru's GDP, which decreased 3.4% compared to the same period in 2019.
In this context, the economy was affected by the national health emergency in force since mid-March to contain the pandemic —an unprecedented event in the country that had an impact on the reduction of
domestic demand (consumption and
investment).
Domestic demand
INEI reported that household consumption spending fell (-1.7%) due to lower purchases of durable goods (-11.2%), non-durable goods (-7.5%), and services (-1.3%).
However, food consumption expenditure grew (3.9%), according to the results of the National Household Survey.
Additionally, the nominal average
monthly income from work in Metropolitan Lima decreased by 0.4% and employment dipped 0.1%.
On the other hand, the government's final consumption expenditure grew by 7.2% due to higher spending on
public health services (7.1%), as well as on public administration and
defense (9.5%) to face the pandemic.