Productive performance of seventeen departments were affected in the first quarter of 2023

In the first quarter of this year, decreased the production of 17 departments compared with the same quarter of 2022; this was informed by the National Institute of Statistics and Informatics (INEI) in the Technical Report of the Productive Activity by Departments.

This result is mainly explained by the reduction of the productive activity in the departments of Apurimac (-11.6%), Pasco (-10.3%) and Puno (-9.6%), due to mining, construction and agricultural sectors. Followed by Tacna (-8.3%) and Ancash (-6.2%), influenced by the lower activity in mining, telecommunications and electricity in the case of Junin (-0.4%), Lima (-0.4%) and Cusco (-0.3%), determined by the negative behavior of the construction, telecommunications and manufacturing sectors.

On the other hand, seven departments showed positive results, outstanding Moquegua (42.8%) attributed to the mining activity due to the contribution of the company Anglo American Quellaveco (operates since September of 2022); followed by Piura (9.7%) and La Libertad (2.0%) based in the increase of the production in the agricultural, fishing and manufacturing sectors; Huanuco (3.5%) driven by the mining activity; as wel as San Martin (1.1%), Ica (0.8%) and Loreto (0.2%).

The productive activity of the department of Apurimac decreased by 11.6% by the Mining activity associated with the lower copper extraction in the Minera Las Bambas, due to the continue stoppage of its operations before the social protests and blockade of the South Road Corridor. In addition, the silver and gold production decreased while the molybdenum production increased. In the Construction sector influenced the lower physical progress in the three areas of government, for its part the National Government with works in rod infrastructure in the city of Abancay; Local Governments in transportation works; and the Regional Government in education infrastructure.

The economy of Pasco decreased by 10.3% due to social conflicts that affected the mining activity due to blockade of roads, stoppage and mobilizations, which caused the temporary suspension of operations, reducing the copper, zinc and silver extraction in the Mining Society El Brocal, and the gold ore in the companies Óxidos de Pasco, Sociedad Minera El Brocal and Nexa Resources Atacocha; while the lead production grew.

During the first quarter of 2023, the production of the department of Puno decreased by 9.6% explained by the Construction sector result that reflected in the lower investment in the three levels of government affected by the social movement happened in the first months of the year. In the National Government with works in the Puno-Juliaca highway; likewise, Local Governments and Regional Government in the road infrastructure. The same behavior, registered the mining activity, supported in the small tin extraction by the Company Minsur caused by the stoppage of its activities (12 January until the end of February 2023), because of conflicts that happened in the south of the country.

Tacna’s economy reduced by 8.3% determined by the mining activity due to the lower molybdenum production by the Company Southern Perú Copper Corporation in the planta of Toquepala linked to the lower mineral ore. Nevertheless, this Company reported an increase in the gold, copper and silver extraction. The Construction sector registered a low investment of the Regional Government in education infrastructure works; and Local Governments in the works of the Ite health station, district of Ite, province of Jorge Basadre. Likewise, Telecommunications sector had a negative result due to the lower mobile phone with post-paid plan and Pay-Tv.

The productive activity of Ancash decreased by 6.2% explained by the mining activity as a consequence of the lower copper extraction in the Mining Company Antamina, affected by social protests at the beginning of the year; and by heavy rains caused by the cyclone Yaku in March of 2023 temporarily paralyzing its operations.

The INEI informed that the production of the department of Lima reduced by 0.4% influenced by the Manufacturing sector due to the contraction of the industries related to canned fruit and vegetables, oils, milk products and other food products; to which it added the lower manufacturing of clothing items, paper products and different plastics and metals. Likewise, Telecommunications sector due to the lower connections of subscription television services and postpaid lines, added to the mobile service interruptions affected by the weather conditions.

Likewise, the negative behavior of the Construction sector was explained by the lower private investment and self-construction face to social conflicts that happened and the adverse effects of the cyclone Yaku.

The productive performance of Moquegua increased by 42.8% driven by the mining activity that has a greater copper extraction supported in the important contribution of the Anglo American Quellaveco Company (that started operations in September of 2022) and also by the contribution of Southern Perú Copper Corporation in the Cuajone mine, that suspend last year activities due to social conflicts.

The economy of Piura increased by 9.7% due to the Manufacturing activity, justified by the high production of Diesel, industrial oil, gasoline and other petroleum products to meet the local demand, favored by the start of operations of the Talara New Refinery in February of 2023. In addition, the manufacturing of fishing products grew (canned, frozen, fishmeal and fish oil) due to the availability of squid and anchovy and sugar refining.

The economy of La Libertad grew by 2.0% due to the Manufacturing sector attributed to the production of fishmeal and fish oil, sugar manufacturing and milling industry, noodles, bakery and others. In the Agribusiness sector influenced the agricultural subsector due to the greater production of paddy rice, followed by the main crops intended to foreign market and agricultural, blueberries, sugar cane and asparagus. Nevertheless, the potato, bell pepper and passion fruit production reduced. Likewise, the livestock subsector decreased due to the lower production of poultry and eggs.