Economy of 16 departments grew in the second quarter of 2024

The National Institute of Statistics and Informatics (INEI) informed that during the second quarter of 2024, the productive activity of 16 departments registered a positive behavior. From all of these departments, nine registered higher rates to the national economy (3.6%). This was stated in the Technical Report Indicator of the Productive Activity by Department.

The departments that outstood by its favorable performance were Puno (27.2%), associated to a base effect; Huancavelica (16.0%), determined by the progress of the agricultural, mining and electricity sectors; Tacna (11.1%), based in the mining activity; La Libertad (10.9%), Ancash (6.8%) and Lima (4.5%), reflected in the contribution of the manufacturing, fishing and transportation sectors; and Piura (6.7%), by the manufacturing, agricultural and construction activities. Together, these seven departments contributed with the 65.6%, of the total of the country’s production.

During the second quarter of 2024, the production of Puno increased in 27.2%, registering two consecutive quarters of the positive results, associated to a base effect due to that in the same period of the last year, registered an unfavorable context caused by social conflicts.

During the quarter under study, the economy of this region was influenced by the agriculture sector, mainly by the agricultural subsector, due to the increase of crops oriented to the internal market (potato, quinoa, alfalfa, barley as grains and oca) and livestock subsector (fresh milk, alpaca and beef cattle).

In addition, the transportation sector was encouraged by the land freight transport before the transportation of agriculture and mining products; the transportation of passengers, favored by the celebration of festivities; and the transportation by air. Likewise, the mining activity increased, based in the greater extraction of tin in the company Minsur (mine San Rafael); as well as zinc, lead, silver and gold minerals.

The productive activity of Huancavelica increased in 16.0%, accumulating an increasing trend by three continuous periods, driven by the Electricity, Gas and Water sector before the high generation of electric energy in the hydraulic power stations Cerro del Águila, Mantaro (Antúnez de Mayolo) and Restitución; added to obtention of water in the company EMAPA Huancavelica S.A.C.

In addition, the Agricultural sector due to the main crops oriented to the domestic market (potato, papa, starchy maize, dried bean and dried fava bean). The same progress showed the mining activity reflected in the greater volumes extracted of copper in the company Operadores Concentrados Peruanos (mine Cobriza), besides of the mining companies Kolpa and Buenaventuira; followed by the gold mineral, in the companies Buenaventura and Sierra Antapite. Also, it increased the extraction of silver, lead and zinc.

The economy of Tacna increased in 11.1% and registered four quarters of positive trend, based in the expansion of the mining activity by the greater levels obtained of molybdenum and copper in the mining unit Toquepala de Southern Perú Copper Corporation, driven by the increase of the ore grades as well as, it increased the extraction of silver and gold in Southern Perú Copper Corporation and Minsur. In addition, the Telecommunications sector was favored by the increase of the number of subscribers to services of cellular telephony (controlled plans, post-paid and pre-paid) and fixed internet.

The INEI informed that the productive activity of the department of the La Libertad expanded in 10.9%, registering a favorable behavior by two quarters in a row. This result was due to the progress of the Manufacturing sector, explained by the positive performance of the manufacturing of fish meal and fish oil before the greater availability of raw material. In addition, outstood the Fishing sector, driven by the greater landing of anchovy in the port of Chicama, associated to the base effect, associated to a base effect, due to that in April and May of 2023 was zero capture of this resource. In addition, it increased the mining sector due to the high levels extracted of gold (first producer at national level) and silver in the companies Minera Boroo Misquichilca and Compañía Minera Poderosa.

The economy of Ancash increased in 6.8% and added three quarters in a raw of positive results. In this behavior influenced the recovery of the Manufacturing sector, due to the greater manufacturing of fish meal and fish oil in the ports of Chimbote and Coishco, before the increase of the capture of anchovy during the first season of fishing; likewise, before the increase of the capture of anchovy during the first fishing season; likewise, the manufacturing of canned fish in the port of Chimbote.

In addition the Electricity, Gas and Water sector explained by the generation of electric energy in the following hydraulic power plants Cañón del Pato, Manta I and Santa Cruz II; added to the abstraction of drinking water in the company SEDACHIMBOTE S.A. additionally, the Agricultural sector expanded due to the agricultural sector, that registered greater crops destined for foreign for foreign market and agro-industry (hard yellow corn, asparagus and grape); also the products oriented to the domestic market (paddy rice, corn maize, sweet potato and potato).

The production of Piura grew in 6.7% after had registered two quarters of negative behavior, outstanding the performance of Manufacturing sector, attributed to the industries of production of fishmeal and fish oil in the port of Bayóvar, associated to the favorable fishing season of anchovy and the preparation of caning of fish in the Paita port, before the availability of squid.

In the Agricultural sector impact in the agriculture sector, due to the expansion of crops destined to the domestic market (paddy rice, starchy maize, lemon and wheat); and of products destined to foreign market and agro-industry (sugar cane, banana and hard yellow corn); linked to the livestock subsector, that registered the highest production of poultry, sheep and goat.

The growth of the Construction sector was supported in the investment of the Regional Government in the improvement of risk and hydroelectric generation of the Regional Government in the improvement of irrigation and hydro-energetic generation of Alto Piura; and of the Local Governments in the construction of roads and sidewalks in the human settlement La Molina of the province of Piura.

The economy of the department of Lima grew 4.5%, determined by the Manufacturing activity, due to the greater preparation of fishmeal, fish oil and canning of marine resources in the ports of Callao, Supe and Chancay; and the greater garments manufacturing, preparation of other food products; meat processing, sugar refining and manufacturing of precious metals and non-ferrous metals.

The Construction sector was driven by the execution of private works (installation of new commercial stores and refurbishing of entrepreneur business, among others) and the investment in infrastructure of protection before floods of the quebrada Huaycoloro of the district of San Antonio, province of Huarochirí; added to the works of construction of the Line 2 Av. Faucett-Gambetta of the Lima and Callao Metro system.

The dynamism of the Commerce activity was associated to the wholesale of solid, liquid and gas fuels and of allied products that are demanded basically for the air transportation service; likewise, the fishing and mining sectors and the retail sale in non-specialized warehouses with a set comprises, mainly of foods, beverages and tobacco.

The production of Apurímac, in the second quarter of 2024, decreased 8.3%, due basically to the negative performance of the mining before the lower extraction of copper in the Ferrobamba pit of the Mining Las Bambas, associated to the lower ore grades; followed to the lead. At the same time, it decreased the volumes obtained of silver and gold due to the null extraction of the mining companies Ares and Anabi; as well as, by the favorable result of the company Korimallko Minerals. Nevertheless, the Agricultural due to the favorable result of the agriculture subsector before the greater crops destined to the domestic market (starchy maize, potato, corn maize and dried fava bean).

Likewise, the Construction sector, was based in the physical progress of works by the National Government with the improvement of educational infrastructure; the creation of the bridge Kutuctay and assesses; and the works of road infrastructure and health in the province of Cotabambas.

The economy of Cusco contracted in 2.6% explained by the Mining and Hydrocarbons sector, associated to the lower mining activity due to the reduced volume extracted of copper in the Company Minera Antapaccay; of gold ore, in the Company Minera Antapaccay and Hudbay Perú; as well as, the production of molybdenum, silver, lead and zinc. Likewise, the hydrocarbons subsector decreased by the low exploitation of natural gas and liquids of natural gas in Pluspetrol Perú Corporation (Lots 88 y 56). Nevertheless, the Agricultural sector increased, favored by the agricultural subsector that reported greater crops destined to the domestic market, influenced the starchy maize, dried fava bean, wheat and barley as grains.

The Construction sector was driven by the physical progress of works of Regional Government, with works of protection before the floods in the province of Canchis; the Local Governments, with the improvement of the Municipal Palace of the district of Pichari; and the National Government, with the investment in the Hospital “Antonio Lorena”, level III-1.

The economy of Arequipa decreased in 1.9%, showing un unfavorable behavior by three quarters in a row, mainly influenced by the mining activity, reflected in the low extraction of copper in the Sociedad Minera Cerro Verde; as well as the gold and silver ores due to the mines Buenaventura, Paraíso and Veta Dorada; and zinc in the Minera Bateas.

Likewise, the Agricultural sector was affected, influenced by the agricultural subsector due to the lower crops destined to the foreign market and agro-industry (olive, artichoke, paprika and grape), as well as, the products oriented to the domestic market (paddy rice, potato and lucerne).

In addition, the livestock subsector decreased due to the inferior production of fresh milk, sheep and llama. And the Construction sector was affected by the low private investment in self-construction and Local Government in the execution of transportation works in the districts of Santa Rita de Siguas (province Arequipa) and Huanca (provinces Caylloma).

The positive performance of the economy of the country, during the second quarter of 2024, was influenced by the increase of the production in the North (5.6%) and Center (4.0%) zone, mainly due to growth of the manufacturing and fishing sectors; in the South zone (2.7%) due to the agricultural activity and in the East zone (0.9%) due to the dynamism of the construction sector.