Gross Domestic Product Will Grow At An Average Annual Rate Of 3.7% During The Period 1950-2021

The National Institute of Statistics and Informatics (INEI) announced that the Gross Domestic Product (GDP) of the Peruvian economy between 1950-2021, that is, in the last 71 years, reached an average annual growth rate of 3.7%. Likewise, according to economic activities, there was an average annual growth rate of 2.8% in agriculture, 5.6% in fishing, 3.8% in oil and mineral extraction, 3.6% in manufacturing, 6.5% in electricity and water, 4.6% in construction, 3.7% in commerce, 4.0% in government services and 3.0% in government services,

4.0% in government services and 3.7% in other services.

By type of expenditure, in the period 1950-2021, the average annual growth rate of its components was as follows: private final consumption 3.5%, government consumption 4.5%, gross capital formation 4.7%, exports 4.5% and imports 5.3%. This is detailed in the document Panorama de la Economía Peruana: 1950-2021, prepared by INEI, a research that includes the recommendations of the United Nations System of National Accounts 2008

During the year 2021, the Peruvian economy measured through the Gross Domestic Product registered a growth of 13.3%, in a context of relaxation of social mobility restrictions, the gradual increase of economic activities in operation, which allowed to expand the scope of participation of activities towards services, the greater access of the population to vaccination programs, as well as the expansive monetary and fiscal policy, which made possible the higher consumption and investment expenses.

In 2021, the growth of the Peruvian economy was mainly explained by the 15.5% increase in domestic demand, driven by the expansion of private final consumption (11.7%), government consumption (6.0%) and gross fixed capital formation (34.1%). In addition, exports (17.1%) and imports (25.1%) increased.

Private final consumption grew by 11.7%, supported by higher purchases of durable goods (26.5%), spending on services (13.5%), other non-durable goods (11.6%) and higher food purchases (7.1%).

The positive performance of government final consumption expenditure, which grew by 6.0%, was due to the greater dynamism of spending on public health (21.2%), public education (3.8%), and public administration and defense (2.6%).

Likewise, gross fixed capital formation increased by 34.1%, explained by the dynamism of construction (39.0%), and by higher purchases of machinery and equipment (26.6%).

Similarly, exports showed an increase of 17.1% over the previous year, mainly due to the increase in external sales of natural gas (121.4%), flour from hydrobiological resources (47.9%), zinc ore (23.5%), grapes (17.9%), gold ore (15.2%), copper ore (14.0%), other fruits (13.2%) and iron ore (2.9%). However, foreign sales of refined copper decreased (-11.2%).

Imports showed a similar behavior, growing by 25.1%, mainly due to higher purchases of trucks, buses and vans (61.5%); plastics, rubber and synthetic fibers (50.7%); crude oil (48.4%); transmission and communication equipment (41.2%); machinery for industry (38.4%); synthetic organic dyestuffs and preparations, and other basic chemicals (33.6%); other general-purpose machinery (31.9%); computers and peripheral equipment (26.0%); and diesel (22.0%)..

As for the contributions of the different expenditure components to the 13.3 percentage point increase in GDP in 2021, the INEI reported that the largest contribution came from private final consumption expenditure with 7.7 percentage points; followed by gross fixed capital formation with 7.1 percentage points; final government consumption contributed 0.9 percentage points, followed by gross fixed capital formation with 0.1 percentage points; and final government consumption with 0.9 percentage points.

government final consumption contributed 0.9 percentage points. However, net exports subtracted 2.3 percentage points, as the positive contribution of exports (4.3%) was less than the positive contribution of imports (-6.6 percentage points).