Andina

Peruvian economy fell 0.55% in 2023

Photo: ANDINA/Daniel Bracamonte

Photo: ANDINA/Daniel Bracamonte

14:59 | Lima, Feb. 15.

The Peruvian economy recorded a fall of 0.55% in 2023 mainly due to the decline in the Manufacturing sector (-6.65%), as well as negative results in the Construction, Financial, Telecommunications, Agriculture, and Fishing sectors, the National Institute of Statistics and Informatics (INEI) reported on Thursday.

Last December, Peru's gross domestic product (GDP) contracted by 0.74% due to a decline in the Manufacturing, Fishing, Financial and Insurance, Telecommunications, and Construction sectors.

In 2023, the Agricultural sector contracted by 2.91% due to the decrease in agricultural (-4.08%) and livestock (-0.85%) production.

In the case of Fishing, the sector's production was reduced by 19.75% due to the lower extraction of species of maritime origin (-21.78%), with lower capture for indirect human consumption (anchovy for fishmeal and fish oil).

In 2023, Manufacturing activity decreased 6.65% due to the lower activity of the non-primary manufacturing subsector (-8.05%) and the primary manufacturing subsector (-2.77%). 

Meanwhile, the Construction sector decreased 7.86%, reflected in the reduction in internal cement consumption (-11.59%).

The Telecommunications and Other Information Services sector fell 5.80%, explained by the telecommunications (-6.42%) and other information services (-1.19%) subsectors.

The institute reported that the Financial and Insurance sector saw a drop of 7.85%, a result associated with the country's monetary program.

Positive results

On the other hand, the Mining and Hydrocarbons sector showed an increase of 8.21%, maintaining its upward trend for three consecutive years, as a result of the positive performance of the metallic mining activity (9.46%).

Similarly, the Electricity, Gas, and Water sector grew 3.68% due to the greater generation of electrical energy (4.03%), water production (1.52%), and gas distribution (1.99%).

In 2023, the Trade sector experienced an increase of 2.36%, a favorable trend observed in its three large components.

Likewise, the Transportation, Storage, Mail, and Courier sector grew 1.27%, supported by the greater activity in the Transportation subsector; however, the Storage, Mail, and Courier subsectors witnessed a decline.

On the other hand, the Accommodation and Restaurants sector rose 2.68%, as a result of the advance of the restaurants subsector (2.56%) and the accommodation subsector (4.86%).

According to the country's statistics institute, the Services Provided to Companies sector increased 0.50% due to the positive result of advertising and market research (5.3%), as well as professional, scientific, and technical activities (1.0%).

Finally, the INEI reported that Government Services grew 2.94%, in response to increased activities carried out by National, Regional, and Local Government institutions.

(END) GDS/RMB/MVB

Published: 2/15/2024