Gross Domestic Product Grew 3.3% In The Second Quarter Of 2022

During the second quarter of the current year Gross Domestic Product of Peruvian economy increased 3.3%, driven by the increase of domestic demand (3.2%), due to the favorable behavior of household consumption (4.6%), which was influenced by the employment and incomes recovery; this was informed by the National Institute of Statistic and Informatic (INEI) in the technical report Behavior of Peruvian Economy.

During the period under analysis, the private final consumption increased 4.6% compared to the same period of the last year. According to the results of the National Household (ENAHO) in the second quarter of 2022, the real total income of workers increased in 10.6%, mainly due to employment growth in 5.5%.

During the second quarter of 2022, government’s final consumption expenditure was lower in -2.8%, compared to the same period of 2021. This result is explained by the decrease of the consumption expense in public health (-11.5%) and public administration and defense (-0,4%), on the other hand, it increased the expense in public education (5.9%). From January to June of 2022 the final consumption of the government registered an increase of 0.3% and in annual terms accumulated an increase of 1.0%.

Gross fixed investment grew in 1.2%, supported by the construction progress (3.7%), mitigated by the lower purchases of machinery and equipment (-3.0%). It should also be mentioned that public investment registered a progress of 1.3% as a result of the greater investment expense of local and regional governments, nevertheless, it was reported a reduction in the investment of the national government and the public enterprises.

For its part, private investment, increased in 1.1% due to the greater execution of projects linked to enlargement and remodeling of multi-family households and condominiums, commercial spaces, buildings for offices, works for civil engineering, among others.

Export and import performance as of the second quarter of 2022

Goods and services exports increased in 3.0%, influenced mainly by the greater sales abroad of non-traditional products (6.6%) and also services; nevertheless, sales abroad of traditional products reduced in -1.5%. Likewise, goods and services imports increased 2.8%; mainly driven by the increase of overseas purchases of goods (2.4%).

During the first six months of 2022, goods and services exports in real terms increased in 5.7%, and during the last four quarters the growth was of 9.0%. On the other hand, goods and services imports increased during the first semester 2.4% and in annualized terms totalized an increase of 11.0%.

During the second quarter of 2022, the Agriculture, Livestock, Hunting and Forestry grew 4.7% due to the positive performance of agricultural subsectors (5.8%) and livestock (1.9%). The activity accumulated as of the first semester 4.4% of growth.

Gross value added of Fishing and Aquaculture decreased -13.0%, due to the reduction of the value of sea fishing in -12,4% and fishing of continental origin in -22.8%. As of the first semester accumulated a decrease of -20.0%.

The activity Oil, Gas, Minerals and Relates Services decreased in -1,3%, as a result of a lower production of minerals and related services (-4.7%), meanwhile, the extraction of crude oil, natural gas and related services increased 19.9%.

During the quarter under analysis, Manufacturing activity increased in 3.5%, showing the recovery of important industries of the country. Industries that registered growth were: textile and leather (20.4%); metal products manufacturing (13.2%); basic metal industries (9.0%); other manufacturing industries (4.1%); manufacturing of non-metallic minerals products (2.7%); and paper, print and playback of recordings (1.4%); mitigated by the decrease of wood and furniture (-12.7%); food (-1.6%) and chemical (-1,5%) industries. As of the first semester registered 2.8% of growth.

Gross value added of the activity Electricity, Gas and Water increased 2.6% due to the increase of production of electricity and gas sub-sectors (2.5%) and water (3.1%). From January to June 2022 increased in 3.0%.

The INEI informed that the activity Construction grew in 3.7% due to the greater implementation of Works from private and public sector. During the first semester accumulated 1.7% of growth.

Gross value added of the activity Commerce increased 2.6% due to the positive behavior of the sub-sector wholesale and retail commerce (3.1%), which was counterbalanced by the decrease of the maintenance and repair of vehicles sub-sector (-3.7%).

During the second quarter of the current year, the activity Transportation, Storage, Mail and Courier expanded in 13.5%, influenced by the sub-sector transportation (14.6%), dimmed by the reduction of the sub-sector storage, mail and courier (-1.8%). During the first semester of 2022 the activity increased in 12.9%.

The activity Accommodation and Restaurants increased in 38.9% explained by the positive behavior of the accommodation sub-sector which increased 127.4%, followed by the restaurants sub-sector with a progress of 34.2%. The activity accumulated as of the first semester 44.3% of growth.

The activity Telecommunications and Other Information Services grew 0.8%, due to the positive behavior of the telecommunications (0.8%) and other information services sub-sectors (0.7%). During the first semester accumulated 2.5% of growth.

During the quarter under study, the activity of Financial, Insurance and Pensions Services decreased-7.2%, due to the negative behavior that showed financial services (-8.6%); nevertheless, it grew the insurance services (0,3%) and pension fund administrators (10.0%). Between January and June contracted 6.3%.

Gross value added of the activity Services Rendered to Companies increased in1.8% compared to the second quarter of 2021. In the first semester accumulated 2.5% of growth.

During the second quarter of 2022, the activity Public Administration and Defense increased 3.1% explained by the greater services registered in: operations of highway police; prison security; women victims with measures of effective protection and cases solved in the first and second instance with the criminal procedure code. Accumulated as of the first semester 3.5% of growth.