Gross Domestic Product decreased -1.0% during the third quarter of 2023

During the third quarter of 2023, the Gross Domestic Product (GDP) contracted -1.0% compared with the same quarter of the last year, before the reduction of the domestic demand in -2.0%. This was explained by the lower gross fixed investment (-7.2%); while the total consumption grew by 0.4%. The National Institute of Statistics and Informatics (INEI) in the technical report Behavior of the Peruvian Economy, it was stated that this result occurred the Coastal El Niño phenomenon adversely influenced in the following activities: Agricultural (-5.0%), Fishing (-8.3%) and Manufacturing (-8.9%). 

 

The gross fixed investment decreased by -7.2% explained by the construction downturn (-9.2%) and the acquisition of machinery and equipment (-3.8%), as a result of the lower purchases of machinery and equipment of imported origin (-5.1%), due to the decrease in machinery and office machines (-15.9%); machinery an tools for agriculture (-11.4%) and industrial machinery (-9.6%). Likewise, it decrease the demand of machinery and domestic equipment (-0.3%) due to the reduction of other miscellaneous fabricated metal products (-11.9%), other specialized metallic structures (-5.6%) and other general-purpose machinery (-2.7%); nevertheless, the purchase of mainly hydraulic equipment (17.5%) and motors, electricity generators and electrical transformers (16.9%), increased.

 

The INEI informed that the household consumption expenditure contracted by -0.1%, due to the lower acquisition of goods and services; influenced by the reduction of employment (-0.9%) according to the results of the Permanent Survey of National Employment (EPEN).

 

The final consumption expenditure increased by 3.0% due to the growth of the public and defense administration (0.8%) and in public education (5.9%); nevertheless, the consumption expenditure in public health decreased (-3.8%).

During the third quarter of 2023, the exports of goods and services grew by 1.3% due to the greater sales of molybdenum (24.6%), refined copper (20,3%), lead ore (17.9%), zinc ore (14.5%), copper ore (12.2%), iron ore (10.6%) and gold ore (9.9%); meanwhile, other fruits (-24.6%) and avocado (-10.1%) decreased.

 

On the other hand, the imports and of goods and services reduced by -2.3% as a result of the lower purchases of plastic, rubber and synthetic fibers (-17.1%), automobiles (-11.9%), lorries, omnibus and trucks (-11.5%). Meanwhile, the purchases of gasoline (41.0%), transmission and communication equipment (28.0%), crude petroleum (26.9%), machinery for industry (15.6%), diesel (9.5%) and other machinery of general use (1.6%).

The gross value added of the activity Agriculture, Livestock, Hunting and Forestry decreased by -5.0% due to the contraction of the agriculture subsector (-7.7%) reflected in the lower harvests both of agro-exportable harvests and important agricultural products of domestic consumption.  Also, reduced the livestock subsector (-0.6%).

 

The activity Fishing and Aquaculture decreased by -8.3% due to the reduction of sea fishing (-8.7%) and continental origin fishing (-4.9%).

 

The INEI informed that the activity Extraction of Crude Petroleum, Gas, Minerals and Related Services increased by 8.9%, as a result of the production of minerals and related services; as well as the extraction of crude petroleum, natural gas and related services that reported a growth of 8.9%. 

 

During the third quarter of this year, the gross value added of the activity Manufacturing decreased by -8.9%. Among the industries that showed a negative behavior were textile and leather (-26.9%); of wood and furniture (-18.8%); non-metallic mineral products (-17.7%); manufacture of paper, printing and reproduction of records (-12.4%); other manufacturing industries (-8.4%); nutritional industry (-8.3%); basic metal industries (-5.5%) and manufacture of metal products (-4.1%). On the other hand, the chemical industry registered a growth of 5.1%.

 

The activity Electricity, Gas and Water grew by 3.0% before the increase of the production of electricity and gas (3.1%) and water (2.7%).

 

During the third quarter of the year 2023, the activity Construction decreased by -9.2% due to the lower execution of works in the private and public sectors. The decrease in private Works was explained by the lower extension and remodeling of multi-family houses and condominiums; shopping centers; hotels, buildings for offices and warehouses; as well as works of civil engineering. 

 

The gross value added of the activity Commerce increased by 2.6% due to the positive development of the wholesale and retail commerce subsector (2.9%). On the other hand, the subsector of maintainace and repair of automotive vehicles decreased (-2.4%)

 

The activity Transportation, Storage, Postal and Courier increased by 0.2% due to the transportation subsector (1.0%). Meanwhile, the services of storage, postal and courier subsector decreased (-9.1%).

 

The gross value added of the activity Accommodation and Restaurants reduced by -0.1% due to the decrease of the restaurants subsector (-0.2%). Nevertheless, the accommodation subsector grew (0.5%).

 

During the third quarter of 2023, the gross value added of the activity Telecommunications and Other Information Services  reduced -3.1% due to the negative development of the telecommunications subsector (-3.2%) and other information services (-2.5%).

 

The activity of the Financial, Insurance and Pension services drop by -7.8% mainly due to the decrease in the activities of financial (-10.8%) and administrators of pension funds (-0.3%) services; nevertheless, the services of insurance companies grew (11.2%). 

 

During the third quarter of 2023, the gross value added of the activity Services Provided to Companies decreased by -0.2% compared to the same period of the last year.

 

The activity of Public Administration and Defense grew by 2.9% due to the greater services registered in court proceedings; accountability and management of public affairs; police operations to reduce crimes and misdemeanors; cases solved in first or second instance jurisdiction with the criminal procedure code; customs clearance and control of debt collector and resources. 

 

The gross value added of the activity Other Services increased by 2.2% due to the favorable development of all the activities that are part of with the exception of the services of public health (-3.0%). The activity other Services mainly comprises the real estate services, housing rent, public and private education, public and private health, art, entertainment and recreational activities, repair of computers and items for personal use and other activities of personal services. 

 

The Other Taxes to Products and Import Duties decreased by -2.1% explained by the contraction of the other taxes to products (-1.8%) and the import duties (-5.6%).

 

The INEI informed that the Other Taxes to Products totalized 16 thousand 619 million of Soles and the import duties registered 389 million of Soles.