Andina

Peru's BCR: National production up 13.3% in 2021

Photo: Courtesy

Photo: Courtesy

14:00 | Lima, Feb. 19.

The Peruvian economy closed 2021 with Gross Domestic Product (GDP) growth of 13.3% compared to 2020 and 0.8% compared to 2019, the Central Reserve Bank (BCR) has reported.

This recovery was based on the relaxation of health measures and the progress of the COVID-19 vaccination process —factors that allowed reversing much of the negative impact from the cessation of non-essential activities in 2020, it explained.

According to the issuing entity, the restoration in 2021 of pre-crisis levels (2019) can be attributed, to a greater extent, to private investment —a result that is consistent with the strong increase in construction sector’s activity.

Public consumption, private consumption, and public investment contributed to this result to a lesser extent.

This advance was offset by exports of services —particularly inbound tourism.

Domestic demand

Concerning domestic demand, it expanded 14.4% in 2021 compared to 2020 and 3.5% compared to 2019.

This year-on-year result is explained by the recovery of private consumption (11.7%) and of private investment (37.6%), driven by the relaxation of health restrictions, the progress of vaccination, greater access to goods and services compared to last year, and the increase in self-construction.

However, the progress of these indicators was attenuated by the deterioration in the expectations of economic agents during the second half of 2021.

The increase in public investment (23.7%) also contributed positively to the annual result, which is explained by greater execution of reconstruction projects and other investment projects of national interest —mainly during the first three quarters of the year.

Meanwhile, public consumption grew 10.7% given the greater acquisition of goods and services to face the pandemic, as well as due to road maintenance and upkeep services.

(END) NDP/VLA/MVB

Published: 2/19/2022