Gross Domestic Product decreased 0.5% during the second quarter of 2023

During the second quarter of 2023, the Gross Domestic Products (GDP) contracted by 0.5%, because of the reduction of the domestic demand (-3.9%). This was explained by the lower gross fixed (-5.6%); while it increased the total consumption by 0.9%, reflected in the consumption of the households (0.4%) and government consumption (3.9%), compared to the same quarter of the last year.

The National Institute of Statistics and Informatics (INEI) in the technical report Behavior of the Peruvian Economy. Also informed that this result took place in a context where the Coastal El Niño phenomenon affected the agricultural, fishing and manufacturing activities.

The gross investment of fixed capital decreased by 5.6% compared to the same period of the last year. This result is explained by the fall in the construction (-6.7%) and the lower purchases of machinery and equipment (-3.7%).

The private investment reduced by 8.0%, due to the lower works related to the construction of residential and non-residential buildings, as well as the reduction in the mining and hydrocarbons investment. On the other hand, the public investment grew by 2.0%, based on the greater expend in General Government infrastructure; while, the public companies registered a reduction in the implementation of investment budget.

The expenditure of private final consumption increased by 0.4% compared to the same quarter of 2023. The preliminary results of the National Household Survey (ENAHO) informed that the expense in foods consumed within the household increased in nominal terms, as a result of the greater consumption expense in the following products: non-alcoholic beverages (16.6%), meats (9.7%),milk, cheese and eggs (7.0%), oils and greases (5.8%), bread and cereals (3.6%), fruits (2.9%), fish (2.5%), legumes and vegetables (1.7%) and other food products (8.8%).

While, the consumption expenditure in sugars and sweets with sugar (-4.5%); coffee, tea and cacao (-5.0%), foods prepared and consumed within the household (-7.2%); and alcoholic beverages (-12.0%).

The Government final consumption expenditure increased by 3.9% compared to the same period of the last year. This behavior is explained mainly by the growth in public and defense administration (3.8%) and public education (2.7%).

The exports of goods and services grew by 9.9% among the main products, which foreign sales increased, were lead ore (55.8%), copper ore (36.8%), avocado (29.9%), products of fishes and chilled and frozen seafood (25.4%); zinc ore (15.0%); gold ore (3.4%) and refined copper (0.2%).

On the other hand, the imports of goods and services decreased by 2.2%. During this period, the foreign purchases reduced of the following products: Diesel (-27.9%), plastics, rubber and synthetic fibers (-21.3%); synthetic organic dyes and preparations and other basic chemical substances (-10.1%); as well as transmission and communication equipment (-8.2%).

During the second quarter of 2023, the Agriculture, Livestock, Hunting and Forestry activity at constant prices of 2007, reduced by 5.7% by the reduction of the agricultural (-7.9%) and livestock (-0.4%) subsectors, mainly.

The Fishing and Aquaculture activity decreased by 60.0% compared to the same period of the last year, explained by the reduction of the marine fishing (-64.8%) and the fishing of continental origin (-4.9%).

The gross value added of the Oil Extraction, Gas, Minerals and Related Services increased by 16.7%, explained by the greater production of minerals and related services (20.5%); nevertheless, the oil extraction, natural gas and related services decreased (-1.9%).

The Manufacturing activity drop by 11.5%. The industries that registered lower production levels were: textile and leather (-23.5%), wood and furniture (-20.5%), food (-17.6%); manufacturing of metallic products (-13.3%), other manufacturing industries (-11.0%), manufacturing of non-metallic mineral products (-8.8%), among the main ones.

The Electricity, Gas and Water activity increased by 5.9% explained by the increase of the production of the electricity and gas (6.8%) and water (1.7%) subsectors.

The gross value added of the Construction activity decreased by 6.7% due to lower implementation of works in the private sector.

The Commerce activity increased by 3.1% by the favorable performance of the wholesale and retail commerce subsector (3.4%); counterbalanced by the maintenance and repair services of automotive vehicles (-1.2%).

The gross value added of the Transportation, Storage, Postal and Courier activity grew by 2.4%, driven by the transportation (2.8%) subsector; meanwhile, the storage, postal and courier subsector (-5.8%), decreased.

The Accommodation and Restaurants activity increased by 5.5% due to the dynamism of the restaurants subsector (6.1%); meanwhile, the accommodation subsector (-1.2%) decreased.

The gross value added of the Telecommunications and Other Information Services activity reduced by 6.7% due to the negative performance of the telecommunications subsector (-7.5%) and other information services (-0.2%).

The Financial, Insurance and Pension Services decreased by 6.5% due to the decrease in the activities of financial services (-7.9%) and the administrators of pension funds (-12.7%); nevertheless, the services of insurance companies (8.0%) increased.

The Services Rendered to Companies activity increased by 1.5% compared with the same period of the last year.

The gross value added of the Public Administration and Defense activity grew by 2.8% compared to the same period of the last year.

The Other Taxes on Products and Import Duties activity decreased by 2.0% compared to the same quarter of the last year, before the lower collection of other products taxes (-2.9%); meanwhile, the import duties (9.1%) grew.