Gross Domestic Product Grew 3.8% In The First Quarter Of 2022

In the first quarter of 2022, the Gross Domestic Product (GDP) increased by 3.8% when compared to the same quarter of 2021, mainly explained by the positive performance of household consumption (4.8%), as well as the increase in exports of goods and services (4.0%). With this result, the Peruvian economy accumulated five quarters of continuous growth; this was announced by the National Institute of Statistics and Informatics (INEI) in the technical report "Behavior of the Peruvian Economy".

In this regard, it is specified that the economy continues to recover by reaching pre-pandemic growth levels, favored by the greater number of economic activities in operation and the greater access of the population to the vaccination programs against COVID-19.

During the quarter under study, private final consumption expenditure increased by 4.8%, helped by the growth in employment and labor income of the population. According to the Permanent Employment Survey of Metropolitan Lima (EPE), the economically active employed population grew by 19.5% and the nominal average monthly labor income by 6.1%. Also contributing to this result was the lifting of restrictions on the capacity of commercial establishments, entertainment and food outlets, due to the decrease in the number of COVID-19 infections.

The INEI reported that the government's final consumption expenditure increased by 2.5%, a behavior supported by higher consumption expenditure in public education (4.3%), public health (3.2%), as well as in public administration and defense (2.3%).

In the quarter under analysis, gross fixed investment decreased -2.2% due to the decrease in construction (0.5%) and lower purchases of machinery and equipment (-4.6%). (-0.5%) and lower purchases of machinery and equipment (-4.6%).

In this regard, public investment decreased by -15.4%, explained by lower capital expenditures by the General Government and public enterprises. The General Government recorded a lower execution of projects associated with the construction of road infrastructure, water and sanitation; agricultural infrastructure; other miscellaneous structures; among others. In addition, investment by public enterprises decreased by -10.1% due to lower spending by PETROPERU.

On the other hand, private investment rose by 1.4% due to the continued execution of private projects related to the expansion and remodeling of multi-family housing and condominiums, commercial premises, civil engineering works, among others. According to the Ministry of Energy and Mines, mining investment increased by 13.3% at current values, supported by higher investment in development and preparation (52.1%), infrastructure (28.8%), exploration (20.3%), mining equipment (11.9%) and plant and beneficiation (5.8%); attenuated by lower spending on other investments (-12.8%).

Exports of goods and services increased by 4.0%, mainly due to shipments of non-traditional products (12.4%), while shipments of traditional products decreased (-1.6%). In addition, imports grew 0.8%, driven by higher purchases of raw materials and intermediate products (6.6%); however, purchases of consumer goods and capital goods contracted (-1.6%).

Agriculture, Livestock, Hunting and Forestry activity grew by 3.7% in the first quarter of 2022 due to the favorable performance of the agricultural (4.3%) and livestock (2.8%) subsectors.

During the quarter under study, the gross value added of the Fishing and Aquaculture activity decreased by -26.2%, explained by the decrease in sea fishing (-30.1%) explained by lower maritime fishing (-30.1%), while inland fishing grew (12.1%).

Oil, Gas, Minerals and Related Services Extraction increased by 1.1% due to a higher production of crude oil, natural gas and related services (11.6%), while the production of minerals and related services decreased (-0.7%).

In the quarter under study, the Manufacturing activity increased by 2.0% as a result of the increase in domestic demand and exports.

The INEI reported that the gross value added of the Electricity, Gas and Water activity increased 3.4% due to the favorable performance of the electricity and gas (3.5%) and water (2.6%) subsectors.

Construction activity decreased -0.5% due to the lower execution of public sector works; however, private works continued.

The gross value added of the Commerce activity increased by 5.9%, explained by the favorable evolution of the subsectors wholesale and retail trade (6.3%) and maintenance and repair of motor vehicles (0.9%).

During the first quarter of this year, the Transportation, Storage, Mail and Courier activity showed an increase of 12.4%, explained by the positive performance of the transportation (13.4%) and storage, mail and courier subsectors (2.0%).

The Accommodation and Restaurants activity increased by 49.4% as a result of the increase in the accommodation (83.5%) and restaurants (47.2%) subsectors.

The INEI reported that Telecommunications and Other Information Services grew by 4.1% due to the increase in the Telecommunications and Other Information Services subsectors.

4.1% due to the increase in the telecommunications (3.5%) and other information services (7.3%) subsectors.

The Financial Services, Insurance and Pensions activity decreased by -5.3% due to the reduction of financial services (-6.7%), however, the growth of the services of insurance companies (2.7%) and pension fund administrators (5.5%).

In the first quarter of this year, the gross value added of the Business Services activity grew by 3.1% compared to the same period of the previous year.

grew by 3.1% when compared to the same period of 2021.

In the quarter under analysis, the Public Administration and Defense activity increased by 3.8% explained by higher services recorded in: Internal tax auditing; Debt control, collection and appeals; Customs clearance; Women victims with effective protection measures; and Qualified registry acts with quality and in a timely manner.

The gross value added of Other Services grew 3.4%. This activity includes real estate services; housing rental; public and private education; public and private health; arts, entertainment and recreation; and repair of computers and personal goods.

Other taxes on products and import duties increased by 4.9% due to the positive performance of other taxes on products (4.8%) and import duties (5.2%).