National production decreased by 0.63% in August of 2023

The national production showed a slowdown of 0.63%, in August of 2023, based in the contractive result of the Agriculture, Manufacturing; Construction; Transportation; Storage and Courier; Accommodation and Restaurants; Telecommunications and Financial sectors. This result was partially counterbalanced due to the growth of Fishing; Mining and Hydrocarbons; Electricity, Gas and Water; Commerce; Services Provided to Companies sectors and other services.

The National Institute of Statistics and Informatics (INEI) through the technical report National Production, also stated that during the period January-August 2023 the country’s economy contracted by 0.58%; while the annualized period (September 2022-August 2023) grew by 0.25%.

The Agricultural sector reduced by 4.05% by the unfavorable behavior of the agricultural (-6.52%) and livestock (-0.45%) subsectors.

Among the crops that were affected were olive (-70.8%), paprika (-61.1%), strawberry (-60.6%), corn on the cob (-42.4%), oil palm (-21.7%), asparagus (-20.4%) and avocado (-6.9%). This happened because of the lower area sown of major crops and adverse consequences of the Cyclone Yaku, registered at the beginning of the year; the Coastal El Niño phenomenon with temperatures above the average value that affected the flowering process in the coast and the lower availability of fertilizers during the period of production process of some crops.

In the contractive performance of the livestock subsector influenced the lower production of eggs (-1.2%), poultry (-1.1%), fresh milk (-1.0%) and goat (-0.7%).

The Fishing sector grew by 49.14% driven by the greater extraction of species of maritime origin (66.02%), intended for indirect human consumption (anchovy for fishmeal and fish oil) with a volume of catch of 182 thousand 785 tons, compared with the 35 thousand 295 tons registered in August of 2022. This shipment corresponded to the exploratory fishing of the North-Center zone of the country’s coastline, mainly in the ports of Chicama and Chimbote that contributed with the 76% of the total fishing.

The fishing for direct human consumption increased by 17.99% due to the greater capture of species intended to the processing of canning (67.5%), consumption in fresh state (20.5%) and frozen (19.5%); nevertheless, the processing for curing (-66.0%) reduced. On the other hand, the fishing of continental origin advanced 0.90% increasing the extraction of species for consumption in fresh state.

The production of Mining and Hydrocarbons sector increased by 5.17% due to the metallic mining activity expansion of 4.63%, based mainly in the greater volume of copper (7.5%), zinc (6.8%), gold (8.3%) and iron (17.5%) production; nevertheless, the silver (-4.1%) and molybdenum (-24.4%) production reduced.

The hydrocarbons subsector recovery by 9.08% was due to the greater level of operation of natural gas liquids (23.7%) and natural gas (16.0%).

The Manufacturing sector contracted by 4.11% before the lower performance of non-primary manufacturing subsector (-9.44%); meanwhile, the primary manufacturing subsector increased (16.52%). In the performance of non-primary subsector influenced the lower level of production in the industry of consumption goods (-11.60%) and industry of intermediate goods (-9.31%); meanwhile, the industry of capital goods grew (32.83%). In the progress of the primary subsector influenced the greater activity in the processing and preserving of fish sectors (105.9%), manufacturing of products of oil refining (49.7%), production of the primary products of precious metals (1.9%) and sugar processing (8.6%).

The Electricity, Gas and Water sector grew by 3.20% due to the greater generation of electric energy (3.18%), production of water (2.76%) and distribution of gas (6.61%). In the result of electricity subsector contributed the greater generation of thermoelectric origin energy (15.9%) and non-conventional renewable energy (10.1%). On the other hand, the generation of hydroelectric origin energy decreased (-14.4%).

The greater generation of water was driven by the companies EPS Grau (4.6%), Sedapal (4.1%), Sedapar (1.6%), Sedalib (1.2%) and Epsel (0.9%). The gas distribution increased by fourth month in a row, due to the lower demand of Power Generators (11.9%) and the distributor establishments of Vehicular Natural Gas (15.8%); meanwhile, the distribution to companies reduced (-23.4%).

During the eighth month of this year, the Construction sector contracted by 9.57%, evidenced in the reduction of the domestic cement consumption (-9.45%) and the lower physical progress of public works (-10.77%).

The result of the domestic cement consumption is explained by the lower progress of the private investment in construction, as well as the self-construction, given the limited recovery of the real state and commercial market. On the other hand, the decrease of the physical progress of public works was registered within the field of Local (-25.8%) and Regional (-9.2%) Government; meanwhile the investment of National Government increased (19.6%). Thus, the works of road infrastructure and improvement projects, rehabilitation and expansion of sanitation and electricity, among the main ones.

During August of 2023, the Commerce sector grew by 2.83% due to the positive performance of the wholesale sale (2.63%), such as the retail commercialization of fuels and lubricants for the industry, mining and gas stations; machinery and equipment for mining, construction, industry and health sectors (bearings, chargers, refrigeration units, generators and medical equipment); metals and metal ores; as well as household goods, before the dynamism of the wholesale of pharmaceutical products (antihistaminic, anti-anaemics and vaccines).

Likewise, the retail sale increased (3.57%) due to the greater commercialization of fuels in gas stations and self-services, joined to the greater demand of agrochemical, veterinary, fertilizing and optical products. In addition, the sale and repair of vehicles (2.13%) increased driven by the development of fairs, commercial campaigns and public-private tenders.

During August of 2023, the production of the Transportation, Storage and Courier sector decreased by 0.28% due to the unfavorable result of the storage and courier subsector (-11.76%). Nevertheless, the Transportation subsector grew (4.55%).

The contraction of the storage and Courier subsector was due to the lower demand of postal and Courier services (-5.39%), as well as the storage and support activities to the transportation (-12.15%), linked to the inland transport, water transport, freight handling, other support services to the transportation and storage and warehouse services. On the other hand, the air transportation subsector increased (9.85%), both on passengers and cargo and also increased the inland and pipeline transportation (3.09%), before the increase of transportation of passengers (4.8%) and of cargo (0.3%) in road. Likewise, the pipeline transport grew (12.3%), due to the greater production of natural gas and natural gas liquids; nevertheless, the rail transportation decreased (-17.3%), due to the lower traffic of passengers and cargo. The transportation by waterways increased by 10.26%.

The INEI informed that the Accommodation and Restaurants sector decreased by 0.67% determined by the lower activity of the restaurants subsector (-0.73%); nevertheless, the accommodation subsector grew (5.72%).

The business with greater level of impact were the touristic, meats and grills, Chifas, coffee restaurants, grilled chicken (Pollerías) and fast food restaurants. Meanwhile, the businesses of concessionaires (0.99%), beverages services (1.43%) and catering services (17.23%) due to greater attention in bars and discos, as well as the increase of contracts.

Telecommunications and Other Information Services sector reduced by 2.35% due to the performance of telecommunications (-2.37%) and other information services (-2.17%) subsectors. In the result of telecommunications subsector influenced the lower service of data transmission (-22.0%) and the telephony service (-3.2%). Nevertheless, the Internet services and subscription TV increased (1.1%).

In the behavior of other information services subsector influenced the contraction of the edition activities (-11.6%), TV and radio programming (-3.1%) and computer programming (-1.6%). On the other hand, the activities of production and exhibition of films and TV programs invigorated (19.2%).

Production of Financing and Insurance sector decreased by 9.68% due lower credits (-7.73%) and deposits (-6.49%) of the multiple banking. According to sector, the credits aimed at corporations, large, medium, small and micro companies (-13.6%), as well as mortgage credits (-0.9%), in contrast to the consumer loans that increased (7.2%). According to economic sectors, there had lower credits the activities of commerce; manufacturing; real state, business and rental activities; agriculture; livestock; hunting and forestry; electricity; gas and water, as well as the construction activity.

The reduction of deposits from the full-service bank was recorded in the line item of Deposits for Compensation for Service Time (-19.0%), Savings Deposits (-18.2%) and Demand Deposits (-16.6%). Nevertheless, the Time Deposits (22.9%) increased.

Services Rendered to Companies sector increased by 0.77%

Services Rendered to Companies sector increased by 0.77%, based on the positive behavior of publicity and market research (7.9%) and professional, scientific and technical activities (2.0%); nevertheless, the activities of administrative services and support decreased (-2.0%), as well as the activities of travel agencies and tour operators (-12.6%).