National production decreased 0.55% in the year 2023

During 2023, the national production of the country reduced in 0.55%, this performance was mainly based in the low result of the Manufacturing (-6.65%) sector, to which it added the results obtained from the Construction, Financial, Telecommunications, Agricultural and Fishing sectors. This was informed by the National Institute of Statistics and Informatics (INEI) in the technical report National Production.

Likewise, it informed that during December of 2023, the productive activity contracted in 0.74% explained by the unfavorable performance of the Manufacturing, Fishing, Financial and Insurance, Telecommunications; as well as Construction sectors.

During the year 2023, the agricultural sector contracted in 2.91% due to the decrease of the agriculture (-4.08%) and livestock (-0.85%) production. In the behavior of the agricultural subsector influenced unfavorable weather conditions, affected by Cyclone Yaku, Coastal El Niño and by El Niño global phenomenon, that were characterized by the registry of high temperatures, rainfalls in the coast, overflowing rivers, droughts in the south of the country, situation that affected the performance of the agricultural crops during the last months of the year 2023. Registered decrease the crops such as mango (-23.1%), cacao (-3.1%), paddy rice (-2.1%) and banana (-0.5%). The livestock subsector decreased in 0.85% before the lower production of fresh milk (-2.4%), eggs (-1.5%) and poultry (-1.4%).

During December of 2023, this sector grew in 0.22%, due to the production of agricultural activity (0.77%); meanwhile, the livestock subsector decreased (-0.60%).

During the year 2023, the production of the Fishing sector reduced in 19.75% due to the lower extraction of species of marine origin (-21.78%), with lower capture for indirect human consumption (anchovy for fishmeal and fish oil), extracting 1,993 295 tons and that against the 4,040.661 tons of the year 2022, meant a decrease of 50.67%. The lower tonnage captured took place in a context of unfavorable weather conditions, where there was greater presence of juvenile anchovy. Meanwhile, the fishing for direct human consumption progressed 3.49% due to the greater capture of species for frozen (5.37%), for consumption in fresh state (3.94%) and for preparation for canned (8.58%); on the other hand, for the preparation of cured decreased (-50.96%).

On the other hand, the fishing of continental origin decreased 6.31%, due to the lower capture of species in its three destinations: consumption in fresh state (-4.39%), for frozen (-11.34%) and preparation of cured (-24.25%).

During December 2023, the Fishing sector decreased 51.34% due to the lower extraction of species of marine origin (-54.99%). This way was affected the landing of species for indirect human consumption (-84.28%); meanwhile, the landing for direct human consumption grew (9.77%). In addition, the fishing of continental origin decreased 3.82%.

During the year 2023, the mining and hydrocarbons sector grew in 8.21% this way kept upward development by three years in a row, as a result of the expansion of metallic mining activity in 9.46%, sustained in the upward volume of the production of the most of metal components, with exception of the silver and tin, outstanding by its contribution of copper, metal that registered a historic record level as well as the iron production; seconded by the hydrocarbons subsector with a slight increase of 0.66%, before the greater exploitation of natural gas, product that also reached a historic maximum volume.

During December of 2023, this sector grew in 3,.55% before the expansion of the metallic mining activity in 4.09%, due to the greater volume of production of zinc (21.1%), copper (1.7%) and gold (9.4%) mainly; attenuated by the slight drop of hydrocarbons subsector in -0.06%, before the lower volume of exploitation of natural gas liquids (-5.0%) and of natural gas (-1.7%).

During the year 2023, the manufacturing activity decreased in 6.65% due to the effect of the lower activity of the non-primary manufacturing subsector (-8.05%) and of the primary manufacturing subsector (-2.77%). The contraction of the non-primary manufacturing subsector was associated to the lower activity of the industry of intermediate goods (-9.60%) and consumption goods (-7.43%); nevertheless, the capital goods increased (7.90%).

Likewise, the primary manufacturing subsector presented a lower activity in the branch of processing and preserving of fish (-24.5%), sugar processing (-4.5%), production of the primary products of precious metals and other non-ferrous metals (-0.2%); as well as the production and preservation of meat (-0.2%); counterbalanced by the increase of the manufacturing of products of oil refining (26.9%).

During December of 2023, the Manufacturing sector decreased in 10.92%, keeping a downwards trend by 11 months in a row, determined by the lower activity of the primary manufacturing subsector (-29.35%) and non-primary manufacturing subsector (-2.60%).

In 2023, Electricity, Gas and Water sector grew 3.68% due to the greater generation of electric energy (4.03%), water production (1.52%) and gas distribution (1.99%). The electricity subsector increased due to the greater generation of thermoelectric origin energy (9.4%) and non-conventional renewable energy (20.3%); on the other hand, the hydroelectric energy reduced (-2.3%). In the increase of the potable water production outstand the companies Sedapal (2.8%), Epsel (1.2%), EPS Grau (1.1%) and Sedapar (0.2%). The gas distribution grew by greater shipments of Vehicular Natural Gas (12.7%) and for electric generators (2.9%); meanwhile, the distribution towards companies decreased (-8.1%).

During December 2023, Electricity, Gas and Water sector showed a progress of 1.04% by greater generation of electric energy (1.01%), water production (1.02%) and gas distribution (2.47%). The electricity subsector increased by the greater generation of hydroelectric origin energy (52.3%) and non-conventional renewable energy (74.6%); on the other hand, the thermoelectric energy decreased (-42.7%).

During the year 2023, the construction sector decreased in 7.86%, reflected in the reduction of domestic cement consumption (-11.59%), counterbalanced by the increase of the physical progress of public works (2.04%).

The lower domestic cement consumption based in the slowdown of execution of works of the private sector as well as the self-construction with greater incidence in the firsts months of that year, due to the climatic factors and social conflicts; nevertheless, this result was counterbalanced by the increase of the physical progress of public works, determined by the increase of works in the National Government (42.2%) and Regional (10.8%) area; nevertheless, the investment in the Local Government area (-22.5%) decreased.

During December 2023, the Construction sector decreased in 0.81% evidenced in the reduction of domestic cement consumption (-10.88%); meanwhile, the physical progress of public works grew (9.18%). The decrease of domestic cement consumption was associated to the private investment in construction, as well as self-construction. Nevertheless, the physical progress of public works presented a positive variation, after five months of unfavorable result, explained by the greater investment in the National Government (38.8%) and Regional (69.5%) area; meanwhile, in the Local Government decreased (-20.5%).

During 2023, the Commerce sector grew in 2.36%, favorable trend observed in its three big components. The wholesale trade (2.34%), driven by the greater sale of machinery for mining, services and health, fuels for wholesale gas stations, urban transportation, and renewal of informatic equipment and computers for public and private sector, among others. The retail commerce grew (2.73%) due to the greater sale of fuels and lubricants in service stations, product of the increase of the vehicle fleet. In addition, it was observed an increase in the sale of new products in specialized stores, such as cellphone equipment, veterinary medical, optics and agro-chemical products. The automotive commerce increased in 1.03% explained by the greater commercialization of light and heavy-duty vehicles, by business strategies and fairs, as well as the public and private tenders. Likewise, the maintenance and repair of automotive vehicles increased before the greater demand of the vehicle fleet.

During December of the year 2023, the Commerce sector increased in 1.99%, due to good performance of the wholesale (1.88%), the retail sale (2.16%); as well as the automotive commerce (2.29%).

During 2023, the Transportation, Storage, Postal and Courier sector grew 1.27% compared to the last year, based on the greater activity of the transportation subsector; nevertheless, the storage, postal and courier subsector decreased.

The transportation subsectorincreased 4.96% due to the greater activity registered in its three components: transportation by air (14.83%), by land and pipeline transportation (2.19%) and waterways transportation (2.86%). In the result of the air transportation outstood the growing demand of domestic flights towards the main cities of the country, as well as towards international destinations. On the other hand, the air freight transportation ended the year with negative trend due to the lower movement of goods with the overseas for this way.

The inland and pipeline transportation increased by 2.19%, driven by the road transportation (2.21%), by transportation of passengers (4.94%), motivated by the summer season, the restart of school classes, the Valentine’s Day, the holidays by the celebration of Holy Week, Labor Day, Mother’s Day, Father’s Day, religious festivity of San Pedro and San Pablo, National Holidays, among the main ones. Nevertheless, the cargo transport decreased 1.43% affected by the low demand of construction, fishing, agriculture and manufacturing sector, among others.

The pipeline transportation grew 2.61% by greater production of natural gas; on the other hand, the rail transportation decreased 2.73%, due to the lower demand in transportation of local residents and tourists and block of railway lines that affected the movement of cargo and passengers. The transportation by waterway progressed 2.86% influenced by the movement of cargo by sea in 3.08%, due to the greater shipment of goods and by inland navigation routes (rivers) in 2.68%, favored by the greater transportation of passengers and cargo (hydrocarbons and goods destined to the retail commerce).

During December 2023, the Transportation, Storage and Courier sector progressed 3.98% due to the favorable result of the Transportation (6.75%) subsector; nevertheless, the Storage and Courier subsector contracted (-3.67%).

During 2023, the Accommodation and Restaurants sector grew in 2.68%, as a result of progress of the restaurants subsector (2.56%) and accommodation subsector (4.86%). The variation registered of the restaurant subsector responded to the promotions by mobile devices of digital wallets (Yape, Plin), presentation of dishes with healthy approach, artistic live performances, advertising through mass media, among the main ones. The restaurant group increased in 2.56% by the dynamism of business of fast foods, Pollerías (grilled chicken), restaurants, Chifas, sandwich restaurants and Japanese food; among others. Likewise, the beverage services (8.09%) and catering service (14.03%) increased. On the other hand, the catering services decreased (-0.72%).

During December of 2023, the Accommodation and Restaurants sector grew in 4.29% due to the progress of restaurants subsector (3.66%) and accommodation subsector (9.94%).

The Telecommunication and Other Information Services sector reduced in 5.80%, during the year 2023, explained by the telecommunications (-6.42%) and other information services (-1.19%) subsectors. The contraction of telecommunications subsector was a consequence of the lower demand of services of data transmission (-21.8%) and services of telephone services (-9.3%); on the other hand, the Internet services and Pay TV (1.4%).

Likewise, the other information services subsector due to the decrease in the edition activities (-8.5%) and the programming activities of TV and radio (-4.5%); on the other hand, the activities of production and film show and TV programs (15.0%) and computer programming (0.5%).

During December 2023, telecommunications sector and other information services reduced in 4.22%, influenced by the negative behavior of the telecommunications subsector in -5.29%; on the other hand, other information services increased in 1.45%.

The INEI informed that Financial and Insurance sector decreased in 7.85%, in the year 2023, result associated to the monetary program of the country, that was the maintenance of a high rate of interest of reference till September of 2023 (7.75%), and that was decreasing progressively to close the year with 6.75%; united to factors of lower production of the sectors.

During December of 2023, the Financing and Insurance sector registered a decrease of 5.74% due to lower credits (-4.69%) and deposits (-0.38%) of the multiple banking. According to target segment, decreased the credits targeted to corporations, big, medium, small and micro-enterprises (-9.0%); meanwhile it increased the consumption credits (3.9%) and the mortgage loans (1.9%). On the other hand, the decrease of deposits of multiple banking, was observed in the sectors of deposits for compensation for time of services (-20.1%) and savings deposits (-10.9%), on the other hand it increased the fixed-term deposits (12.9%) and demand deposits (0.9%).

The sector Services Provided to Companies, during the year 2023, increased 0.50% due to the positive result of advertising and market research (5.3%) and professional, scientific and technical activities (1.0%); nevertheless, it registered decrease the activities of administrative services and support to companies (-0.9%) as well as the travel agencies and tour operators (-8.6%). Publicity and market research was favored due to launching of advertising campaigns and professional, scientific and technical activities that were influenced by the awarding of new projects.

During December 2023, the sector Services Provided to Companies increased in 0.99%, due to the positive result of travel agencies and tour operators (12.6%), publicity and market research (3.6%) and professional, scientific and technical activities (1.2%); nevertheless, the administrative and support service to companies’ activity contracted (-1.5%).

During the year 2023, the government services grew 2.94%, in response to the greater activities performed by the institutions of the National, Regional and Local Government. The Public Administration increased 3.0%, Defense 2.6% and other government services in 2.5%.