Production of 11 departments reported favorable results in the third quarter of 2023

The National Institute of Statistics and Informatics (INEI) in the technical report Indicator of the Departmental Productive Activity of the third quarter of 2023, informed that during the third quarter, 11 departments showed a positive behavior, outstanding Moquegua (26.6%), driven basically by the mining activity before the significate contribution of the Quellaveco mining unit. Likewise, it also grew in following departments, Piura (6.2%), Cusco (5.3%), Tacna (5.2%), Ica (2.0%) and Arequipa (1.6%), among the main ones. Nevertheless, the economy of 13 departments was affected, placing 12 below the national average (-1.0%).

Regarding this issue, it must be said that the negative result of the national production was influenced by the reduction of productive activity in Lambayeque (-12.2%) and Amazonas (-4.4%), explained by the agricultural, construction and transportation sectors; followed by Junín (-7.8%) and Apurímac (-2.7%) due to the mining, construction and telecommunications activities; Tumbes (-5.2%), Áncash (-4.2%), Ayacucho (-2.4%) and Loreto (-1.7%), determined by the agricultural, mining and hydrocarbons and construction sectors; La Libertad (-4.7%) and Cajamarca (-1.1%), supported in the agricultural and electricity activities. Likewise, Lima (-2.3%) and Puno (-1.5%) attribute to the construction, transportation and telecommunications sectors.

According to geographic zones, the country’s low production was due to the decrease in the economies of the North (-2.6%) Center (-2.1%) and Orient (-0.2%) zones; counterbalanced by the growth of the South zone (4.8%) favored by the performance of the mining activity in Moquegua.

The production of the department of Lambayeque decreased by 12.2% and registered a negative performance by three periods in a row, due to effect of the adverse weather conditions in the north of the country due to the “The Coastal El Niño” phenomenon which impacted in theAgriculture sector determined by the agriculture subsector before the lower crops destined for foreign market and agro-industry, such as blueberries, asparagus and coffee as well as paddy rice; while avocado, grape and sugar cane increased.

Likewise, the livestock subsector reduced due to the production of poultry, fresh milk and eggs. In the Construction sector decreased the physical progress of works in the three government levels, by the side of the National Government with the works in the Health Center Reque, district of Reque, province of Chiclayo; Local Governments, in the execution of education infrastructure; and the Regional Government in the service of agricultural irrigation water from the channel called Pulen, district and province of Chiclayo. In addition, the Transportationsector was affected influenced by the transportation of cargo by road, by showing a low demand of the service in the agricultural and construction sectors.

The economy of the department of Junín decreased by 7.8% registering a negative trend for four consecutive periods, determined by the mining activity reflected in the lower extraction of copper and molybdenum in the Mine Chinalco Perú; as well as zinc mineral. Nevertheless, the collection of silver and led increased in the mining companies Volcan and Chungar. The reduction of Construction sector was due to the lower public investment of the local Governments in road and pedestrian works in the district of Yauli, province of Jauja; and the Regional Government in the construction of the Cantuta bridge in the districts of El Tambo and Pilcomayo, province of Huancayo. In the Electricity, Gas and Water sector under the generation of electric energy in the hydraulic centers of Yaupi, Chimay, La Virgen, Malpaso and Yanango, among others. Also the production of potable water increased.

The productive activity of the department of La Libertad decreased by 4.7%, registering an unfavorable behavior by two periods in a row, influenced by the adverse weather conditions such as high temperatures caused by “The Coastal El Niño” phenomenon that caused the reduction of the sector Agricultural sector affecting the agricultural subsector due to the decrease of their main crops destined to the foreign market and agroindustry, such as blueberries, avocado and hard yellow corn; nevertheless, the production of sugar cane, asparagus and potato grew. Regarding the livestock subsector contracted due to the lower production of poultry and eggs.

The Manufacturingsector was affected by the negative result of the industries related to meat production; preparation of grain mill products, noodles and pasta, bakery and others; and preservation of fruits and vegetables due to the low supplying of raw material. Likewise, the Transportationsector decreased due to the in land transportation of freight, before the lower transportation of agricultural and manufacturing products; linked to the transportation service of maritime freight and air freight.

The economy of the department of Áncash contracted by 4.2% reporting a negative trend by three consecutive periods, explained by the mining activity due to the reduction of the volumes produced of gold, before the base effect registered of the Barrick Perú company due to the closure of its operations in the Mine Pierina since April of 2023; followed by the minerals such as copper and silver in the Mining Company Antamina; on the other hand the extraction of zinc, molybdenum and lead increased.

TheManufacturing sector was determined by the lower production of fishmeal and fish oil in the ports of Chimbote and Coishco, associate to the decrease of supplying of anchovy; the same behavior registered the sugar processing and processing of meats for local consumption. The Agricultural sector was affected by the agricultural subsector that registered lower crops destined to the foreign market and agro-industry, such as blueberries, sugar cane, asparagus, paprika and avocado; on the other hand, the hard yellow corn, starchy maize and sweet potato increased. Meanwhile, the livestock subsector by the production of poultry, eggs and ovine decreased.

The productive activity of the department of Lima decreased by 2.3% showing a negative result by three consecutive periods, based in the manufacturing activity due to the lower manufacturing of cement; production of fish meal and fish oil; processing of fruits and vegetables, zinc refining; and manufacturing of clothing items.

In the Construction sector the private investment in construction of multi-family households, offices and commercial centers contracted; likewise, the execution of works by the side of Local Governments in the works of the northern section of the Metropolitano in the districts of Comas and Carabayllo; and by the side of Regional Government in the infrastructure of transportation in the district of Comas. Likewise, the drop in the Transportation sector was due to the transportation services of inland cargo as a consequence of the lower demand for the transportation of manufacturing products and construction materials.

The production of the department of Moquegua grew by 26.6% and kept a positive behavior by five periods in a row, encouraged by the mining activity associated to the superior production of copper and molybdenum as a result of the important contribution of the Company Anglo American Quellaveco that registered a copper extraction since September of 2022 and molybdenum since May of 2023. The same trend reported the Electricity, Gas and Water sector due to the greater generation of electric energy in the thermic power stations of Nepi and Planta Ilo-Reserva Fría. Meanwhile, the Construction sector decreased influenced by the lower physical progress of works of the National Government in infrastructure of transportation in the provinces of Mariscal Nieto and General Sánchez Cerro.

The economy of the department of Piura increased by 6.2%, favoring the manufacturing activity that registered a greater petroleum refining outstanding the contribution of the New Refining Talara that starts their operation in February of 2023; likewise, the preparation of fish meal and fish oil in the Bayóvara port; as well as preparations of canned and frozen of fish in the port of de Paita; and the manufacturing of sugar.

The increase of Agricultural sector was determined by the agriculture subsector due to the greater crops to the foreign market and agro-industry, such as the paprika, grape, sugar cane and hard yellow corn; nevertheless, the livestock subsector decreased decrease due to the livestock production of poultry and eggs.

Meanwhile, the Construction sector contracted explained by the lower investment of the National Government in Works of the Support Hospital Chulucanas, district of Chulucanas, province of Morropón and the Hospital of support Apoyo II-2 Sullana of the district and province of Sullana; as well as the Local Governments in the works of road infrastructure.

The INEI informed that the productive activity of the department of Cusco increased by 5.3%, driven by the Mining and Hydrocarbons sector attributed to the dynamism of the hydrocarbons subsector due to the greater production of natural gas in Pluspetrol Perú and Repsol; and exploitation of liquids of natural gas in the Lots 57 y 88. Likewise, the mining subsector increased before the higher extraction of copper in Hudbay Perú, and the gold mineral by Hudbay Perú and Antapaccay; in addition, the molybdenum and silver increased. It increased the Construction sector determined by the physical progress of Works by the side of Local governments in the improvement of the water system for irrigation in the district of Ancahuasi, province of Anta; and infrastructure works in the Education Institution “Serapio Calderón Lazo de la Vega”, district and province of Paucartambo.

On the other hand, the Agriculturalsector decreased determined by the agricultural subsector that presented a reduction of its main crops, the dry fava bean, barley in grain and annatto; beside of the starchy maize and wheat. Regarding the livestock subsector, it presented a negative result due to the lower production of beef cattle and alpaca.

The economy of the department of Arequipa increased by 1.6%, explained by the mining activity due to the greater extraction of molybdenum and copper in the Mining Society Cerro Verde; also, the gold mineral increased in the companies Veta Dorada, Sol de los Andes and Caravelí. The same performance showed the Agricultural sector associated to the increase of agricultural subsector due to the greater crops destined to foreign market and agro-industry, the paprika, grape and olive; likewise, the crops oriented to the domestic market, such as the potato. Nevertheless, it was attenuated by the contraction of the livestock subsector before the lower production of poultry and fresh milk, basically.

On the other hand, the Construction sector decreased as a consequence of the low investment of the Regional Government in the second stage of the Project Majes Siguas; and the Local Governments in work of road infrastructure in the province of Arequipa.