National production decreased 0.63% in February of this year

During February of this year, the national production decreased in 0.63%, explained by the negative evolution of five economic sectors: Agriculture, Manufacturing, Construction, Telecommunications and Finance; this was informed by the National Institute of Statistics and Informatics (INEI) in the technical report National Production. Likewise, it informed that during the first two months of this year, Peruvian economy decreased by 0.87%; and in the annualized period March 2022- February 2023 increased by 1.93%.

Agricultural sector production decreased by 1.08% due to the performance of the agricultural subsector (-0.99%) by registering lower volumes of paprika (-74.5%), corn (-25.0%), tomato (-23.7%), onion (-22.2%), potato (-20.0%), alfalfa (-9.2%) and banana (-7.5%). This was influenced by the unfavorable weather conditions registered in the coast, with prevalence of night-time temperatures below its regular weather condition, which caused delays in the growth of the fruit; in the Sierra (mountain region), there was reported a sudden drop of night-time temperatures that affected the development of crops. At the same time, there were reported conditions in Peruvian jungle that favored the fruiting and ripening stage ion the crops.

On the other hand, the livestock sub-sector contracted by 1.20% due to the lower level of eggs (-3.5%), wool (-2.8%), poultry (-1.8%) and fresh milk (-0.4%).

The INEI informed that the Fishing sector grew 8.96% driven by the greater extraction of species of maritime origin (11.40%), intended to direct human consumption for canning (34.30%), for freezing (12.69%) and to consumption in fresh state (7.78%). The same trend showed the fishing sector for indirect human consumption (resource anchovy for fish meal and fish oil), registering an extraction of 43 864 tons, that against the 41 519 tons reported in February of 2022 means an increase of 5.65%, based in the resource coming from the north and center zone of the Peruvian coastline as part of the second fishing season that finished during the first days of February.

The fishing of continental origin decreased in 4.24% before the lower extraction of species for frozen and for curing.

The production of Mining and Hydrocarbons sector grew in 0.27% due to the progress of metal-mining activity in 2.51%, driven by the greater volume of copper production (10.8%) and iron (38.3%). Nevertheless, tin (-99.3%), molybdenum (-22.5%), lead (-10.1%), silver (-8.6%), zinc (-5.9%) and gold (-4.9%) production decreased. Hydrocarbons subsector decreased by 11.53% before the lower exploitation of crude oil (-32.9%) and natural gas liquids (-6.3%); nevertheless, the natural gas production (2.7%) increased.

During February of this year, the Manufacturing sector decreased in 1.27% as a result of the lower activity of non-primary manufacturing subsector (-8.38%); dimmed by the increase of the primary subsector (24.45%). The decrease of the non-primary subsector was caused by the lower production level in the consumption goods industry (-9.18%) and intermediate goods (-8.63%). On the other hand, the progress of primary subsector was based mainly on the greater activity in the processing and preservation of fish (188.7%) and in the manufacturing of primary products of precious metals (5.8%); products manufacturing of oil refining (10.9%), as well as in the sugar processing (4.7%).

Electricity, Gas and Water sector increased by 4.09% as a result of the greater generation of electric energy (4.42%) and water production (2.78%); nevertheless, it decreased the gas distribution (-1.99%). The performance of electricity subsector was driven by the greater generation of thermoelectric origin energy (14.1%) and hydroelectric origin energy (1.3%); nevertheless, the generation of non-conventional renewable energy reduced (-15.4%).

Water production grew due to the greater volumes of potable water production of the Company Sedachimbote (2.5%), Epsel (2.1%) and Sedapal (2.0%); on the other hand the production of Sedapar (-6.6%), EPS Grau (-2.7%) and Sedalib (-3.5%) decreased. The negative result in the gas distribution, was produced due to the lower demand of the Electric Generations (-6.2%); nevertheless, the demands of the Companies (18.6%) and the distribution establishments of Vehicular Natural Gas (16.7%) increased.

The production of Construction sector decreased by 10.15% reflected in the lower domestic consumption of cement (-15.63%); that was counterbalanced by the increase of the physical progress of public works (25.23%). The behavior of the domestic consumption of cement is explain by the lower dynamism of private Works and the self-construction, due to social conflicts, which were translated in highway blockades in specific zones of the country, that generated the cancellation of orders and work stoppage in some works.

On the other hand, it increased the physical progress in the three areas of government: National (64.6%), Regional (20.2%) and Local (0.1%); due to the greater requirement of protection works against floods; road projects; expansion of sanitation system; as well as the development of the hospital infrastructure, medical centers, schools, among the main ones.

During the second month of this year, the Commerce sector increased by 2.37% influenced by the retail sale (3.1%) of new products in specialized commerce such as electronic, optic and topographic articles; greater demand of pharmaceutical products and the sale in gas stations and self-service gas stations. The wholesale (2.2% was favored due to the greater commercialization of fuels and allied products, metals and metal ores, machinery and equipment for industry, commerce and navigation. The sale and repair of vehicles grew 1.6%.

The INEI informed that the production of Transportation, Storage and Courier 2.30% due to the favorable result of Transportation (7.58%) subsector. Nevertheless, the storage and Courier (-8.04%) subsector decreased. In the transportation subsector came into play the positive performance of the transportation by air (21.8%) before the greater movement of passengers; also grew the transportation land road and pipeline transport (2.8%). Likewise, it increased the transportation by water (0.4%) due to the increase of transportation of passengers and load by river route.

On the other hand, it decreased the storage and Courier subsector due to the lower requirement in services of storage and support activities to transportation (-8.3%) and in postal and courier (-2.6%) activities affected by social conflicts within the country.

During February of this year, Accommodation and Restaurants sector grew by 4.07% determined by the increase of restaurants subsector (4.16%); nevertheless, the accommodation subsector (-0.20%) decreased. The result of the restaurants subsector was explained by the special offers in summer campaigns, advertising through massive media, live shows and better performance of delivery service; joined to the development of different national and international gastronomic fairs commemorating “Day of Love and Friendship”, “National Day of Pisco Sour”, among others. On the other hand, the accommodation subsector was affected by the reduction of touristic flow, caused by social conflicts that were translated into highway blockades in specific zones of the country.

The production of telecommunications and other services of information contracted by 9.15%, determined by the negative performance of the telecommunications subsector (-10.13%) while other information services (0.65%). In telecommunications subsector decreased the services of data transmission (-16.8%) and telephony (-14.9%), both fixed and mobile; nevertheless internet service (2.2%) grew.

The increase of other information services subsector was determined by the greater production and film show and TV programs (56.4%) and in computer programming (0.4%); while there were affected the edition (-9.5%), TV and radio programming (-5.4%).

The Financial and Insurance sector reduced by 7.95% due to the lower credits (-6.31%) and deposits (-6.51%) of multiple banking. According to segment credits targeted to big, medium and small corporations and micro-enterprises (-12.3%) and mortgage for housing (-1.3%); nevertheless, consumer loans increased (12.8%). By economic sectors, loans targeted to commerce, real state, business and leasing activities, manufacturing, transportation, storage and communications, construction and mining.

The reduction of deposits of multiple banking was observed in the Service Time Compensation Deposits (-17.6%); Savings Deposits (-17.1%) and Demand Deposits (-14.9%); while Fixed-term Deposits grew (24.6%).

The INEI informed that Services provided to Companies increased by 1.49% due to the dynamism of travel agencies and tour operators (10.8%), publicity and market research (4.5%), scientific and technical professional activities (1.5%) and administrative service and support to company’s activities (0.4%). The result of the month was influenced by the tourism greater activity towards abroad (air tickets, cruise travels and packages offers of international tourism), driven with promotions of holiday and summer season.

Advertising area was favored by the launch of new advertising campaigns in traditional media (TV, radio, written press), in Brand activation and digital marketing in platforms (searchers and web sites, social networks), boosting of the promotion and rent of advertising panels for summer campaigns and start of the school year. The professional, scientific and technical activities grew through engineering projects, architecture designs, studies and environmental consulting, among others. The administrative and support services increased by the greater demand of cleaning general service of buildings, leasing of machinery and heavy-duty equipment; as well as automotive vehicles due to progress of public and private works.

The Government Services increased by 2.92% explained by the greater activity performed by the institutions of National Regional and Local Government. Additionally, Public Administration (3.0%), Defense (1.5%) and Other sectors (1.2%) grew.