National Production Growed 2.01% In October 2022

In October 2022, national production increased by 2.01% as a result of the favorable evolution of most economic sectors; with the exception of Manufacturing, Telecommunications and Financial; This was announced by the National Institute of Statistics and Informatics (INEI) in the technical report National Production. It also reported that in the period January-October of this year and between November 2021-October 2022, productive activity increased by 2.81% in both cases.

Agricultural production grew by 5.18% driven by the positive performance of the agricultural subsector (7.77%), given the higher volumes produced of raw cotton (383.2%), tomato (117.7%), oregano (57 4%), garlic (32.3%), grapes (22.8%), hard yellow corn (6.7%) and asparagus (4.7%), among the main ones; This result was based on the largest cultivated area and favorable climatic conditions in some areas of the country (on the coast and Andean region, temperatures between normal and low, and in the jungle, normal temperatures and climatic conditions).

Similarly, the livestock subsector rose 1.31% due to higher volumes of fresh milk (2.4%), pig (1.8%), poultry (1.4%) and bovine (0.9%) production. ).

The INEI reported that the Fishing sector showed an advance of 1.85% due to the greater extraction of species of maritime origin (8.53%), for direct human consumption (8.60%), destined for the production of canned food (244 0.0%) and for consumption fresh (24.9%). However, the landing of anchovy for indirect human consumption (fishmeal and fish oil) decreased, registering a catch of 1,099 tons that, compared to the 1,260 tons of October 2021, contracted by 12.83%, during the Second Fishing Season in the southern part of the country, characterized by the lower availability of this resource. Likewise, the fishing of continental origin decreased by 24.90% due to the lower extraction of species for consumption in fresh state (-39.2%).

The Mining and Hydrocarbons sector grew by 1.66% due to the good performance of the metallic mining activity at 3.54%, evidenced in the higher volumes of production of tin (24.2%), copper (7.5%), gold (5.2%) and lead (3.0%); however, the production of iron (-8.2%), zinc (-5.4%), molybdenum (-3.9%) and silver (-2.3%) was affected. The hydrocarbons subsector contracted by 9.20% due to lower oil exploitation (-24.6%) and natural gas liquids (-11.6%); however, natural gas production increased (9.1%).

During October of this year, the production of the Manufacturing sector fell by 0.63% as a result of the lower activity of the non-primary subsector (-1.33%); while the primary subsector increased (2.10%). The unfavorable result of the non-primary subsector was determined by the lower activity in the production of intermediate goods (-2.15%); instead, the production of capital goods (38.71%) and consumer goods (0.07%) increased.

The positive behavior of the primary subsector was supported by the greater manufacture of precious and non-ferrous metals (5.0%), processing and preservation of fish (22.6%), processing and preservation of meat (1.7%), as well such as sugar production (0.3%).

In October of this year, the Electricity, Gas and Water sector grew by 4.22% associated with the dynamism of the electricity subsector (4.79%) and the water subsector (1.25%); however, the gas subsector decreased (-1.53%). The result of the electricity subsector was related to the greater generation of energy from thermoelectric origin (22.9%) and non-conventional renewable energy (7.2%); meanwhile, the generation of hydroelectric energy decreased (-12.7%).

The progress of the water subsector was associated with the higher level of drinking water production by the companies: Sedalib (2.2%), Epsel (1.7%), Sedapar (1.6%), EPS Grau (0.6% ) and Sedapal (0.6%), among the main ones; The contraction of the gas subsector was determined by the lower demand of Electricity Generators at -4.0%.

The Construction sector grew by 4.15% due to the greater physical progress of works (37.81%); on the contrary, the internal consumption of cement decreased (-6.40%). The physical progress of works was reported at the three levels of government, especially at Local (59.0%) and Regional (49.4%); which included improvements in health infrastructure, expansion of water and drainage services, recovery of land transportation routes and construction of bridges, as well as flood protection works on river banks.

The contraction of the internal consumption of cement was associated with the lower dynamism of private works and self-construction, in the case of real estate projects; authorization of land for urban centers; industrial projects such as production plants; expansion and remodeling of schools; business centers; mining centers and works in shopping centers, among the main ones.

The INEI announced that the Commerce sector increased by 2.76% due to the positive performance of wholesale sales (3.26%), aided by the signing of public and private contracts; retail sales (2.12%), which was favored by campaigns such as Cyber ​​Wow 2022, book fairs, among others. Also, the sale and repair of vehicles increased (0.39%). The advance of this sector occurred within the framework of the Creole Song Day, Halloween, the tour of the image of the Lord of Miracles in the country and the long holiday.

During October of this year, the production of the Transportation, Storage and Courier sector increased 9.45% due to the favorable result of the transportation (14.04%) and storage and courier (0.59%) subsectors. The growth of the transport subsector was affected by the development of transport by air (40.7%); transport by land and by pipelines (8.5%), due to greater road traffic of passengers (15.2%) and cargo (1.0%), as well as the greater movement by rail (13.1 %). Similarly, transportation by waterway grew (8.1%) due to the dynamism of transportation on inland waterways, influenced by the growing demand on the long holidays of the month.

The storage and courier subsector increased due to higher storage services and transportation support activities (0.8%), while postal and courier activity contracted (-3.6%).

The Accommodation and Restaurants sector increased by 10.02% due to the dynamism of the restaurant subsector (8.01%) and the recovery of the accommodation subsector (33.07%). The variation registered in the restaurant subsector was supported by the greater number of people due to the innovation of menus, the opening of branches, the celebration of strategic alliances with the financial sector, the presentation of shows and live music, drink promotions and advertising strategies in social networks. Also, dates such as Día de la Canción Criolla and Halloween contributed, in a context of a long holiday.

The Telecommunications and Other Information Services sector decreased by 6.69% due to the negative result of the telecommunications subsector (-7.73%); while the other information services subsector grew by 1.09%. The contraction of the telecommunications subsector was influenced by the lower activity of telephone services (-11.8%), both fixed and mobile; likewise, data transmission (-14.3%); while Internet service and subscription television increased (2.4%). The advance of the other information services subsector was determined by the greater production and exhibition of programs and films (17.8%), computer programming (3.3%) and publishing (0.8%); on the contrary, the activity of TV and radio programming decreased (-7.1%).

In October of this year, the production of the Financial and Insurance sector fell by 4.01%, mainly influenced by lower credits (-2.93%) and deposits (-6.07%) from commercial banks. By segment, loans to corporations, large, medium, small and micro-enterprises (-8.0%) were affected, which was offset by the increase in consumer loans (16.2%) and mortgage loans for housing (0 ,5%); according to economic sectors, the placements directed to real estate, business and rental activities decreased; Commerce; transport, storage and communications; electricity, gas and water; construction and manufacturing. The decrease in multiple banking deposits was explained by Service Time Compensation (-26.2%), demand deposits (-15.1%) and savings deposits (-12.2%).

The Services Provided to Companies sector increased by 2.38% due to the good performance of travel agencies and tour operators (148.8%), advertising and market research (5.9%) and professional, scientific and technical activities (0.9%); however, activities related to administrative services and business support decreased (-3.2%). The variation obtained, in this sector, was influenced by the greater national and receptive tourism, lodging services, promotional campaigns for long holidays and personalized tours; Professional, scientific and technical activities increased due to the execution of projects, progress of works, expansion and maintenance of electricity distribution networks. Likewise, advertising was favored by advertising campaigns per season,

Government services increased by 2.43% explained by the greater activities carried out by institutions of the National, Regional and Local Government. The Public Administration sector increased by 2.41% due to activities of the Judiciary in judicial processes of the superior courts of justice and actions in judicial processes; the National Elections Jury developed electoral processes and electoral management; the Ministry of Economy and Finance responded to requests for social security rights and obligations and the Congress of the Republic carried out actions of representation, legislation and political control, among the main ones. The Defense sector advanced by 2.61% due to military maintenance services, continuing education for the military, as well as military training for technicians, NCOs, and officers.