Gross Domestic Product expanded 3.6% in the second quarter of 2024 driven by the domestic demand

The second quarter of 2024, the Gross Domestic Product (GDP) expanded in 3.6% as a result of the increase of the domestic demand in 5.3%, in a context of economic recovery and of reduction in inflation. This was informed the National Institute of Statistics and Informatics (INEI) in the technical report Behavior of the Peruvian Economy.

The domestic demand expanded by the greater expense in gross fixed investment (3.4%) and the total consumption (2.8%). In addition, it was informed that the seasonally adjusted GDP increased in 1.2% compared to the immediate previous quarter.

In the second quarter of the year, the private final consumption expenditure increased in 2.3%, which means a greater consumption of goods and services by the side of the families, based by the increase of employment and incomes. At current prices, the private final consumption expenditure represented the 63.8% of the Gross Domestic Product, reaching the amount of 175 thousand 73 million of Soles.

According to the results of the Permanent Survey of National Employment (EPEN), the employed population increased in 0.2%, driven by the urban employment (1.0%). Likewise, the incomes from work expanded (6.4%).

The INEI informed that the Final Consumption Expenditure of Government grew in 5.4%, compared to the same period of the last year. This behavior was explained by the growth of the expense in Public Administration and Defense (5.6%), Public Education (4.0%) and Public Health (7.1%).

The gross fixed investment grew in 3.4% based by the growth of the construction sector (3.3%) and greater purchases of machinery and equipment (3.4%).

The gross fixed investment increased as a result of the greater public investment (13.7%), in projects associated to the construction of educational facilities and administrative buildings; works of agricultural infrastructure and works of civil engineering, mainly. On the other hand, the private investment decreased in 0.4%.

During the quarter under analysis, the export of goods and services decreased in 2.5% compared to the same period of the last year. Among the products which foreign sales reduced were: copper ore (-21.5%); zinc ore (-19.2%); natural gas (-6.1%) and avocado (-3.4%).

On the other hand, the imports of goods and services increased in 3.2%, as a result of the greater purchases of: plastics, rubber and synthetic fibers (19.7%); crude petroleum (9.0%); other machines of general use (6.8%); machinery for Industry (5.2%); diesel (3.5%); and transmission and communication equipment (3.0%).

Agriculture, Livestock, Hunting and Forestry activity grew 8.0% as a result of the recovery of agricultural (10.9%) and livestock (1.5%) subsectors.

The GDP of the Fishing and Aquaculture activity increased in 183.6% compared to the same period of the last year, based in the greater maritime fishing by 230.6%. On the other hand, the fishing of continental origin contracted by 27.4%.

Gross value added of Oil, Gas, Minerals Extraction and Related Services registered a contraction of 3.3%, as a result of the fall in the production of minerals and related products (-3.4%) and the extraction of crude petroleum, natural gas and related services (-2.9%).

The Manufacturing activity registered a growth of 10.1%, due to the expansion of the main industries such as: food-processing industry (27.8%); wood and furniture (25.6%); chemical (12.6%); textile and of leather (11.3%); other manufacturing industries (6.9%); and manufacturing of non-metallic mineral products (6.0%). On the other hand, the manufacturing of metallic products and basic metal industries decreased in 8.5% and 2.7%, respectively.

During the second quarter of 2024, Electricity, Gas and Water activity grew in 1.4% associated to the increase of the production of electricity and gas (1.2%) and water (2.3%) subsectors.

Gross value added of the Construction activity grew in 3.3% due to the greater execution of construction works in non-residential buildings, works of road infrastructure and works of civil engineering performed by the General Government.

The INEI also informed that the Commerce activity increased in 2.5% by the favorable performance of the wholesale and retail commerce subsectors (2.6%) and maintenance services and repair of automotive vehicles (0.7%).

The gross value added of the Transportation, Storage, Postal and Courier activity increased in 6.7%, as a reflection of the transportation and storage, postal and courier subsectors (6.7% each one).

During the second quarter of 2024, the Accommodation and Restaurants activity increased in 0.4%, due to the growth of accommodation (3.0%) and restaurants (0.2%) subsectors.

The GDP of the Telecommunications and Other Services of Information activity increased in 2.1% as a reflect of the growth of telecommunication services (2.1%) and other information services (2.5%).

The gross value added of the Financial, Insurance and Pensions activity reduced in 1.0%, due to the decrease in the activities of financial services (-1.3%); counterbalanced by the growth of the services of insurance companies (1.4%) and administrators of pensions funds (0.4%).

The GDP of the Services Provided to Companies increased in 3.4% driven mainly by the greater demand of services offered by travel agencies and tour operators (48.5%); advertising and market research services; and rent of machinery and equipment and tangible goods (4.0% each one); and rent of vehicles (3.9%).

The activity Other Services increased in 2.7% due to the favorable behavior of all activities that are part of it. Comprises the real estate services; housing rent; public and private education; public and private health; art, entertainment and recreation; repair of computers and personal use belongings; and other activities of personal services.

The gross value added, at constant prices of 2007, of Public and Defense Administration grew in 3.8% compared to the same period of the last year.

The Other Taxes to Products and Import Duties sector grew in 1.4%, explained by the increase of other taxes to products (1.8%) and a reduction in import duties (-3.1%).