National production grew 0.31% in April of this year

In April 2023, national production increased by 0.31% compared to the same month of the previous year, due to the performance of various production sectors among the main ones Mining and Hydrocarbons; Accommodation and Restaurants; Electricity, Gas and Water; Commerce; Transportation, Storage and Courier; Telecommunications and other Information Services. Six subtracted from the overall result. Likewise, the National Institute of Statistics and Informatics (INEI) in the technical report National Production reported that in the period January-April of this year, the country's economy decreased by 0.24%; however, it increased in the last 12 months (May 2022-April 2023) by 1.38%.

The agricultural sector fell by 14.21% due to the lower production of the agricultural subsector (-20.24%) with crops such as quinoa (-81.8%), olive (-42.3%), amylaceous corn (-36.5%), potato (-35.1%), hard yellow corn (-22.4%), sugar cane (-21.8%) and alfalfa (-21.1%). This happened due to the lower plantings of the main crops (-12.6%), to which unfavorable weather conditions were added. On the Coast, temperatures prevailed above their average values, persistent and intense rainfall, associated with the “El Niño Costero” phenomenon. In the Sierra (mountain region) were reported temperatures below its normal climate level that affected crops like potatoes, quinoa and fodder.

The livestock sub-sector contracted by 0.80% due to the reduced production of eggs (-1.5%), poultry (-1.3%), fresh milk (-0.7%) and ovine cattle (-0.4%).

The Fishing sector was reduced by 2.57% due to the lower extraction of species of maritime origin (-6.60%), mainly from direct human consumption (-1.57%), intended for canning (-30.5%), for freezing (-5.2%) and curing preparation (-2.4%).

Likewise, fishing for indirect human consumption (anchovy resource for fish meal and fish oil) decreased by reporting a landing of 6,444 which compared to 26,114 tons of April 2022, recorded a decrease of -75.3%. This was caused by the anchovy movement to greater depths in the ocean, before the increase in surface sea temperatures, which limited the progress of the first fishing season of the anchovy resource in the southern coastal area. In addition, fishing of continental origin increased 14.15% due to the effect of the greater extraction of species for consumption in the fresh state and for frozen.

The Mining and Hydrocarbons sector grew by 17.41% due to the dynamism of metal mining activity by 20.86%, associated with the higher volumes produced of copper (31.4%), zinc (31.4%), lead (9.1%), iron (2.9%) and silver (0.2%); while, the production of molybdenum (-2.9%), gold (-1.4%) and tin (-0.9%) decreased. Additionally, the production of the hydrocarbon subsector decreased by 0.34% explained by the lower exploitation of natural gas liquids (-5.3%). However, production of natural gas (6.1%) and crude oil (1.6%) increased.

In April of this year, manufacturing activity decreased by 3.84% as a result of the lower activity of the non-primary sub-sector (-7.74%). However, the activity of the primary sub-sector grew (11.07%). The behavior of the non-primary sub-sector influenced the lower production of the consumer goods industry (-8.96%) and the intermediate goods industry (-7.59%); however, the production of the capital goods industry grew by 2.54%.

In the result of the primary sub-sector contributed the greater activity of the manufacturing branch of oil-refining products (40.79%), the manufacture of precious metal primary products (7.99%) and fish preparation and conservation (29.30%).

The Electricity, Gas and Water sector grew by 7.32% driven by generation electric energy (8.42%) and water production (1.55%) while gas distribution (-2.44%) decrease. The performance of the electricity subsector influenced the higher generation of thermoelectric energy (48.2%) and unconventional renewable energy (5.2%); however, hydroelectric generation (-6.2%) decreased.

The increase in water production was due to the higher volumes of potable water production of the companies such as Sedapal (5.2%) and Seda Chimbote (0.1%); while, it decreased in EPS Grau (-7.6%), Epsel (-4.3%), Sedalib (-3.2%) and Sedapar (-1.9%). Gas distribution added five months of unfavorable behavior due to lower demand from Electric Generators (-2.5%) and Companies (-7.4%). However, the distribution (15.8%) to Vehicular Natural Gas sales establishments increased.

The Construction sector contracted by 5.12%, reflected in the reduction of domestic consumption of cement (-16.10%); however, the physical progress of public works (30.72%) grew.

The performance of domestic consumption of cement was linked to the reduction of self-construction works and limited progress of private works, to which climate factors such as intense and persistent rainfall that caused the blockage of various access roads were added, mainly in the northern part of the country.

The dynamism of the physical progress of works was observed in the three areas of government: National (52.0%), Regional (33.2%) and Local (18.0%), highlighted the improvement, repair and construction works of buildings such as health centers, educational centers, community centers, road projects, risk and disaster prevention works, as well as the expansion of the sanitation system.

Commerce sector grew by 3.18% due to the wholesale sales (3.17%) before the greater commercialization of telephone equipment, radio of portable communication and devices of semiconductors, in machinery and equipment due to the demand for cooling equipment, among the main ones. Likewise, the increase in retail sales (3.37%) were associated to the commercialization of new products from specialized warehouses as safety items, electric and optical motors, increased demand for pharmaceutical products, together with increased sales in gas stations and self-services gas stations. Similarly, vehicle sales and repair of vehicles grew (2.56%).

In April of the year 2023, the Transportation, Storage and Courier sector progressed by 3.08% due to the performance of the Transport sub-sector (5.71%); however, the storage and courier sub-sector decreased (-5.75%).

The transportation subsector grew due to the dynamism of air transportation (16.6%) due to the movement of passengers and cargo; transportation by land road and pipeline transport (2.5%) due to the movement of passengers by road (6.8%); by pipeline transport (2.0%) and by rail transport (10.6%) linked to the greater movement of cargo. In addition, water transport (9.5%) grew due to transporting cargo by sea, as well as passengers and cargo by river route. In contrast, the storage and courier sub-sector (-5.75%) decreased in the face of the minor services in postal and courier (-6.7%) activities, as well as in storage and transportation support activities (-5.7%).

Accommodation and Restaurants sector increased by 9.10% due to the progress of the restaurant sub-sector (9.16%) and the accommodation sub-sector (2.83%). In the behavior of the restaurant sub-sector influenced the long Easter holiday, the special offers through mobile applications with use of digital wallets, opening of branches and franchises. It also contributed to the development of gastronomic fairs such as “Sabores Nikkei”, “Feria Gastronómica y Artesanal” y “Gastronomía Viva” in Lima, among others.

The production of Telecommunications and other information services decreased by 9.87% by the telecommunications sub-sector (-11.17%); however, other information services increased (0.96%).

In the result of the telecommunications subsector influenced the lower activity of data transmission services (-21.4%) and telephony services (-15.7%) while Internet and subscription television services grew (1.4%). In the sub-sector, other information services influenced the production and display of movies and TV shows (40.5%) and computer programming (3.6%). However, editing activities (-11.6%) and television and radio programming (-9.3%) contracted.

The contractive result of Financial and Insurance sector by -7.22%, is explained by the lower credits (-7.38%) and deposits (-6.97%) of the full-service banking. By segment, credits targeting corporations, large, medium, small and micro-enterprises (-12.8%) and mortgages (-2.2%) were reduced, while consumer credits (8.5%) grew. According to economic sectors, lower amounts were channeled to trade, manufacturing, real estate, business and rental activities, construction, electricity, gas and water, transportation, among others.

The lowest dynamics in the deposits of the full-service bank were reported in the items of Compensation for Service Time (-21.6%); Savings Deposits (-19.9%) and Demand Deposits (-17.9%), with the exception of the Time Deposits that increased (31.6%).

The production of Services Rendered to Companies increased by 1.57% driven by the advertising and market research (4.3%), professional, scientific and technical activities (2.4%) and administrative services and business support activities (0.3%). While travel agencies and tour operators were affected (-9.9%). Advertising and market research grew due to increased investment in advertising campaigns, digital marketing and advertising planning and strategies.

The professional, scientific and technical activities grew due to new consulting contracts, supervision of mining works and the development of new mining project operations in the regions. Administrative and support services activities reported a higher number of surveillance contracts, custodial services and patrol services. Instead, travel agencies reported lower air ticket sales, travel packages, cancellation and postponement of travel reservations.

During April of this year, Government Services grew by 2.85% due to the greater activities carried out by the institutions of the National, Regional and Local Government. Likewise, Public Administration (2.9%), Defense (1.8%) and Other Government Services (1.4%) activities increased.