National production grew 4.47% in July of 2024

The national production increased by fourth month in a row after growing 4.47% in July of 2024 compared to the same month of the last year, determined by the positive behavior of the majority of economic sectors, outstanding Manufacturing, Other Services, Construction, Mining and Hydrocarbons, Transportation, Services of Government, Services Rendered to Companies, as well as Accommodations and Restaurants. Meanwhile that the Agricultural sector registered an unfavorable performance.

The National Institute of Statistics and Informatics (INEI), in the Technical Report National Production, also stated that from January to July of 2024 the economic activity of the country increased 2.78%. And in the annual period (August 2023-July 2024) registered a variation of 1.37%.

The Agricultural production reduced in 3.93% due to the contractive performance of the agricultural sector in 7.02%, associated to the lower volumes obtained from olives (-98.3%), dried bean (-26.5%), paprika (-23.8%), potato (-16.9%), cacao (-13.8%) and hard yellow corn (-7.1%), due to the lower area sown, to which there were added adverse weather conditions and the advance of the harvest of some products.

On the other hand, the livestock subsector increased in 1.62%, explained by the greater volumes of sheep (3.5%), poultry (2.3%), beef cattle (1.1%) and fresh milk (0.3%) production.

Fishing sector increased 14.86% before the greater extraction of species of marine origin (26.02%). The main increase registered in the landing of species for indirect human consumption (anchovy for fish meal and fish oil), extracting 39,203 tons, that against the 43 tons registered in July of 2023, evidenced an increase of 39,160 tons, as a result of the landing in the South ports (Mollendo and Ilo).

Likewise, the capture for direct human consumption grew 14.28%, which was oriented to the preparation of frozen (27.5%), canning (16.5%) and consumption in fresh state (4.7%); meanwhile it decreased for the preparation of curing (-41.9%). The fishing for continental origin reduced in 28.21% before the lower extraction of species destined to consumption in fresh state, frozen and cured.

During July of 2024, the Mining and Hydrocarbons sector grew in 3.10%, driven by the metal-mining activity (0.67%). In that regard, the greater volumes of molybdenum concentrate (38.0%), silver (16.6%), lead (8.9%), gold (4.5%) and tin (0.3%) outstood. Meanwhile, the production of zinc (-16.1%), copper ( -3.0%) and iron (-1.1%) reduced.

The production of hydrocarbons subsector increased (21.55%), influenced by the growth of liquids of natural gas (32.3%), natural gas (15.3%) and crude petroleum (14.0%).

During the seventh month of this year, the Manufacturing sector increased in 10.91%, according to the figures of the Ministry of Production. This result was linked to the greater activity of the primary manufacturing (12.56%) and non-primary manufacturing (10.40%). subsector.

In the positive behavior of the primary manufacturing subsector influenced the greater activity of the branch of preparation and conservation of fish, crustaceans and molluscs (65.1%), manufacturing of products of the oil refining (13.4%), manufacturing of primary products of precious metals and other non-ferrous metals (5.8%), the preparation and conservation of meat (2.3%), as well as the preparation of sugar (1.7%). The progress of the non-primary manufacturing subsector was explained by the greater production of the industry of consumption goods (19.46%) and intermediate goods (2.60%).

The Electricity, Gas and Water sector grew 2.98% due to the greater generation of electric energy (3.49%) and gas distribution (2.24%). Meanwhile, the water production decreased (-0.54%).

The electricity subsector increased due to the greater generation of hydroelectric origin (16.24%) and of non-conventional renewable energy (70.97%). Meanwhile, the generation of electricity of thermoelectric origin (-9.79%) reduced. Gas distribution expanded due to the greater demand of companies (35.9%) and retailing establishments of Vehicular Natural Gas (10.4%). On the other hand, the demand of Power Stations decreased (-4.3%).

The decrease of the water subsector was based in the lower generation of potable water of the companies Sedapal (-2.9%), Sedalib (-2.6%), EPS Grau (-0.9%) and Sedapar (-0.3%).

The Construction sector increased 7.10% due to the dynamism of the physical progress of public works (30.57%); partially counterbalanced by the lower execution of private Works, evidenced in the behavior of domestic cement consumption (-0.50%).

The increase of the physical progress of public Works was registered in three areas of the government National, Regional and Local. According to type of work, it showed dynamism the construction of non-residential buildings; prevention of risks; basic services and the investment in works of road infrastructure. On the other hand, the reduction of the domestic cement consumption was associated to the low level of progress of different type of construction projects of the private sector; as well as self-construction works.

The Commerce sector registered a progress of 3.36%, based in the greater commercialization of goods through wholesale channel (3.83%), given the rotation of pharmaceutical products, white line, stationary items and texts, before the greater tenders won and the positive performance of the campaign for National Holidays.

The retail sale increased 3.85%, driven by the demand of computers and telecommunications equipment by campaigns and special offers through digital media and performance of events such as “Cyber Days”, among others. Nevertheless, the automotive commerce decreased (-2.36%), explained by the lower demand of auto motive vehicles, its maintenance and repair.

During July of 2024, the production of the Transportation, Storage and Courier sector progressed 7.32%, associated to the favorable behavior of the transportation (5.69%), as well as storage and courier (11.64%) subsectors.

The growth of the transportation subsector was linked to the transportation by land and pipping (3.82%), before the greater traffic of passengers (4.0%) and load (2.4%) by road, favoured by the half of the year vacations and National Holidays. In addition, the rail transportation also increased (10.9%), with the increase of the movement of passengers. And the pipping transportation (19.1%), by its greater extraction of crude oil and production of natural gas and liquids of natural gas. At the same time, the transportation by air increased 11.93% by the greater mobilization of passengers and load. The same trend registered the transportation by waterways (18.98%), before the greater traffic of cargo by sea and of passengers by river route.

In addition, the positive behavior of the storage and Courier subsector (11.64%) was driven by the postal and Courier services (20.16%), and also the storage and activities of support to the transportation services (11.16%).

The Accommodation and Restaurants sector increased 5.40% due to the dynamism of the restaurants (5.40%) and accommodations (5.58%) subsectors.

The result of the restaurants subsector was explained by the positive evolution of the restaurants establishments (4.57%), food services to transportation companies and concessionaires (9.11%), beverage services (5.75%) and catering services (10.45%). In the group of restaurants influenced the activities by National Holidays, Chicken Grill Day, National Day of Pisco and gastronomic fairs, among the main ones.

Telecommunications and Other Services of Information Sector increased in 1.25%, influenced by the result obtained of the telecommunications (0.92%) and other services of information (3.58%) subsectors. In the telecommunications subsector outstood the Internet and pay TV (3.2%) telephony service (0.02%). On the other hand, the service of data transmission was affected (-3.9%).

In the Other Services of Information subsector increased the activity of computer programming (6.5%); edition (2.2%); production and film show and TV programs (0.8%), as well as the TV and radio programming (0.7%).

Financial and Insurance sector increased 0.07%, based in the greater deposits (5.71%) of the multiple banking and in lower measure by the mortgage loans for housing (3.43%). According to the type of deposit, the demand deposits (13.4%) and savings deposits (8.0%) outstood. On the other hand, the deposits of time service compensation (-9.8%) and the time deposits (-1.9%) reduced.

The credits of the multiple banking were affected by lower business loans (-2.2%) and consumption credits (-5.3%). By economic sectors, the credits channeled towards to other activities of community services; real state, business and rental activities; manufacturing; agriculture, livestock, hunting and silviculture; construction and hotels and restaurants activities.

During the month of July of this year, the Sector Services Provided to Companies increased in 4.06% due to the positive result of travel agencies and tour operators (39.8%), advertising and market research (6.2%), professional, scientific and technical activities (2.8%), and activities of administrative and support to company services (2.1%).

Government Services grew 3.99% as a result of services provided for Public and Defense Administration (4.0% for both cases) and Other Services (3.4%).