Only in twelve departments the production activity exceeds to the national average during the 4th quarter of 2022

In the fourth quarter of 2022, production activity increased by 15 departments compared to the similar quarter of 2021, of which 12 had positive rates above the national average (1.7%), highlighting Moquegua (51.1%) associated with the growth of mining activity, followed by Apurimac (5.7%) and Arequipa (1.7%) whose production was driven by Mining Electricity, Transportation and Commerce activities, as reported by the National Institute of Statistics and Informatics (INEI), through the Indicator of Departmental Production Activity.

Cusco (4.1%), Cajamarca (3.3%) and Ancash (2.0%) also grew, influenced by the progress of the Construction, Commerce and Transportation sectors. La Libertad (3.9%), Ica (3.4%) and Tumbes (2.7%) also grew influenced by the progress of the Agricultural, Transportation, Mining and Hydrocarbons and Construction activities. In the same way, Piura (3.8%) also grew influenced by the progress of Agricultural, Manufacturing and Transportation sectors; Pasco (3.7%) and Puno (2.8%) for the increase in Mining, Construction and Transportation; also, it grew in Loreto (1.2%), Ucayali (0.3%) and Lambayeque (0.2%).

It should be noted that the 15 departments with positive results contributed with 43.4% of the national total. Result that was attenuated by the negative result of nine departments, affecting Tacna (-1.8%), Junin (-1.2%) and Lima (-0.3%) due to the contraction of the Mining and Hydrocarbons, Telecommunications and Manufacturing sectors.

By geographical zone, the economy of the South zone (7.0%) highlighted due to the contribution of the mining activity registered in Moquegua before the beginning of operations of the company Anglo American Quellaveco since September 2022. To a lesser extent, the North (2.9%), East (0.2%) and Central (0.1%) zones increased.

The Moquegua economy increased by 51.1% and added two consecutive quarters of growth due to the base effect reported on mining activity, due to the greater extraction of copper due to the start of operations of the company Anglo American Quellaveco in September 2022, with the region being located, during this quarter, as the first copper producer national level; molybdenum, silver and gold also increased.

Likewise, the electricity sub-sector increased, due to the greater generation of power in the Nepi and Ilo 2 thermal power plants, associated with the greater requirement of the mining sub-sector. In the Manufacturing sector, the precious and nonferrous metals industry influenced by external demand of refined copper and gold products; also, the production of frozen associated with the availability of marine species. Similar behavior was observed in the Construction sector, which showed greater physical progress of works of the Local Governments, such as roadwork of Av. Alfonso Ugarte and Av. Santa Fortunata of the district of Moquegua, province of Mariscal Nieto; the Regional Government, with transport works; and the National Government, in educational and sanitation infrastructure.

In the fourth quarter of 2022, Apurimac production increased by 5.7%, explained by Mining activity before the high extraction of copper and molybdenum in the Minera Las Bambas, despite continuous social conflicts with the surrounding communities, a statistical effect was observed due to the stoppage of operations between 18 and 30 December 2021 (comparison base). However, silver and gold extraction decreased. In the Transportation sector, the transport of passengers by road increased, associated with the mobilization of people during the long holidays that promoted domestic tourism. However, the Agricultural sector contracted, reflected in the lower production of corn, potatoes, alfalfa, green bean pea, beef, porcine, fresh milk and alpaca, among others.

The economy of the Cusco department rose by 4.1% and accumulated five consecutive periods of positive behavior, driven by the Construction sector due to significant investment in the Local Governments, in projects for the improvement of livestock production development in the communities of the district and province of Espinar; the National Government, with the works at Hospital Antonio Lorena; and the Regional Government, in transport infrastructure. The dynamism of the Transportation sector were attributed to the air transport of passengers and cargo, influenced by the opening of the new Cusco-Ayacucho route and the reopening of the “Teniente Alejandro Velasco Astete” International Airport after the temporary suspension of operations; transportation by natural gas pipelines; the ground transport of passengers and cargo; and the rail transport of passengers.

On the contrary, the Mining and Hydrocarbons sector decreased due to the negative behavior of the hydrocarbon subsector, due to the lower exploitation of natural gas liquids in the companies Repsol (lot 57) and Pluspetrol Peru in lots 56 and 88, this last one due to preventive maintenance in November 2022; while, natural gas production in lot 88 increased. Meanwhile, the mining subsector grew due to the greater extraction of copper, molybdenum and gold. For its part, the contraction of the Agricultural sector was determined by the agricultural sub-sector that had lower production of potatoes, alfalfa, olluco, yucca and achiote, among others.

During the quarter under analysis, La Libertad production increased by 3.9%, adding two continuous quarters of growth, determined by the Agricultural sector that reported higher crops for the external and agribusiness market, such as blueberry and sugarcane (first producer of both); followed by bell pepper, hard yellow corn and onion; while asparagus, grape and chili decreased. In addition, the livestock subsector had increased production of poultry, fresh milk, beef and porcine. Mining activity was stimulated by higher volumes extracted of gold from the Boroo Misquichilca Mining and Consorcio Horizonte Mining, mainly; and the obtaining of silver from the Boroo Misquichilca Mining. The Construction sector also grew due to the physical progress of the National Government, in flood protection infrastructure in the districts of La Esperanza and Huanchaco in the province of Trujillo; and the Local Governments, with the reconstruction of roads and sidewalks in the town of Viru, district and province of Viru.

Piura’s production activity increased by 3.8%, after a negative trend for four continuous quarters, supported by the expansion of the Manufacturing sector by industries related to the manufacture of industrial oil, diesel, turbo and other petroleum products intended for the domestic market; as well as, the production of canning, flour and fish oil associated with the availability of marine resources. The increase in the Agricultural sector was supported by the progress of the agricultural sub-sector due to the largest crops aimed at the external and agribusiness market, such as grapes, cotton branches and mangoes, being the first producer of these products; however, the livestock sub-sector was affected by the low production of poultry, porcine and eggs. For its part, the Construction sector recorded a negative result due to the lower execution of private and self-construction projects. Likewise, the Mining and Hydrocarbons sector fell, reflected in the reduction of the exploitation of crude oil in batches II, VII/VI, X, XV and Z-2B; natural gas liquids in in the lot Z-2B; and due to the lower extraction of the gold ore from the Craft Miners.

Ica’s production increased by 3.4% explained by the positive behavior of mining activity attributed to the higher iron extraction by Shougang Hierro Peru; copper in the companies Minera Shouxin Peru and Nexa Resources Peru; and gold ore in Vista Gold. In the Construction sector, the investment of the Local Governments and the National Government in road infrastructure was raised; in addition to the Regional Government, with the work of the Rio Grande-Santa Cruz-Palpa basin. The dynamism of the Transportation sector were supported by the transport by road of passengers and cargo, before the mobilization of people during the long holiday and the opening of road works, such as the integration road in Pueblo Nuevo-Ica and the El Acero-Buena Fe Bridge (Nasca); in addition to the transport of sea freight and cabotage. The Agricultural sector also grew due to the positive progress of the agricultural sub-sector by reporting greater crops intended for the external and agribusiness market, highlighting its main product, asparagus; followed by cranberry and paprika, the third producer of these ; however, the production of onions, artichokes, tomatoes and grapes was reduced; the production of the livestock sub-sector was affected by the lower production of birds.

Lima department production reported a slight drop of 0.3%, after seven uninterrupted quarters of positive behavior, showing a slowdown in the Metropolitan economy since the third quarter of 2021, due to the contraction of the Manufacturing activity, associated with industries related to the production of flour and fish oil before the poor capture of anchovy and other species; oil refining due to low gasoline and industrial oil production and domestic-oriented sugar manufacturing. Similarly, the Telecommunications sector decreased demand for prepaid mobile and pay-TV services. Also, the Construction sector was reduced due to the lower private investment in various projects, such as the building of multifamily homes, offices and shopping centers; while, the execution of public works continued, such as Line 2 and the branch Av. Faucett-Gambetta of the basic network of the Lima and Callao Metro.