Gross Domestic Product decreased -0.4% in the 4th quarter of 2023

During the 4th quarter of 2023 the Gross Domestic Product (GDP) contracted -0.4%, compared with the same quarter of the last year, as a result of the reduction of the domestic demand (-1.0%); unfavorable performance that was attenuated by the increase of the exports of goods and services (5.9%). This was informed by the National Institute of Statistics and Informatics (INEI), in the technical report Behavior of the Peruvian Economy.

This result occurred within a context of adverse weather conditions that affected the agriculture, fishing production and transformation sector; in spite, thew increase of mining and services sector. Also, informed that during the year 2023, the GDP of the country reduced in -0.6%.

During the last quarter of 2023, the private final consumption expenditure increased in 0.2% compared to the same period of the last year. In this result influenced the greater consumption of foods (0.1%), food service (0.6%) and other services (1.8%); by contrast it decreased the consumption of other non-durable and durable goods.

According to the results of the Permanent Survey of National Employment (EPEN), the families increased their job incomes. During the year 2023, the private final consumption expenditure, increased in 0.1%.

During the quarter of study, the government final consumption expenditure increased in 7.3%. This behavior is based in the growth of the expenditure in public administration and defense (9.7%) and in public education (1.7%), nevertheless, the expenditure of the consumption in public health decreased (-7.7%).

During the year 2023, the government final consumption expenditure, at constant prices of 2007, increased in 3.2%.

During the 4th quarter of the gross fixed investment decreased in -1.,1% as result of the reduction of the private investment (-3.2%), due to the lower works related to the expansion and remodeling of residential and non-residential buildings and the reduction in the mining and hydrocarbons investment; by contrast it increased the public investment (6.9%). By type of goods the investment in construction contracted in -4.5%, meanwhile it increased the purchases of machinery and equipment (5.2%).

At the end of the year 2023, the gross fixed investment decreased in -5.7% due to the decrease of the private investment (-7.5%), meanwhile, the public investment grew in 1.0%. On the other hand, the investment in construction (-8.0%) and in machinery and equipment (-1,9%) reduced.

In the 4th quarter of 2023, the export of goods and services grew in 5.9% compared to the same period of the last year due to the greater sales abroad of mining products (8.9%), emphasizing the shipments of zinc (29.7%), gold (16.1%) and copper (15.7%). During the year 2023 the exports increased in 5.1%.

The imports of goods and services grew in 3.0%, compared to the same period of the last year due to the greater acquisitions of capital goods for industry (7.6%) and consumption goods (2.2%), on the other hand the import of raw materials and intermediate products (-3.8%) decreased. At the end of the year 2023, the imports reduced in -1.8%.

During the fourth quarter of 2023, the gross value added of the activity Agriculture, Livestock, Hunting and Forestry decreased in -1.1% due to the negative performance of the agriculture (-1.3%) and livestock (-0.9%) subsectors, that were affected by the unfavorable weather conditions that affected the products oriented to domestic consumption and agro-export.

During the year 2023, this production activity accumulated a contraction of -2.9% due to the regression of agriculture (-4.1%) and livestock (-0.9%) subsectors.

Ther Fishing and Aquaculture activity decreased in -3.6% explained by the reduction of the marine fishing -4.5% and attenuated by the continental fishing in 3.1%. On the closing of the tax year2023, this activity decreased in -19.7%, determined by the contraction of the marine fishing (-21.6%) and continental fishing (-5.9%).

During the 4th quarter of 2023, the activities of Oil, Gas Extraction, Minerals and Related Services increased in 4.8%, determined by the greater production of minerals and related services (5.9%); nevertheless, the extraction of crude petroleum, natural gas and related services (-1.9%) was affected.

Up to the fourth quarter of 2023, this activity accumulated a growth of 8.2% underpinned by the greater production of minerals and related services (9.5%) and crude petroleum, natural and related services (0.7%).

The manufacturing activity reduced in -5.7% due to the contractions in the main industries that are part of this activity: textile and leather (-13.1%); non-metallic mineral products (-12.0%); basic metal products (-7.3%); food (-7.1%); other manufacturing industries (-5.4%); manufacture of metal products (-2.9%); chemical (-1.5%) and wood and furniture (-0.5%). In contrast, the paper manufacture, printing and playback of recordings registered a growth of 3.7%.

During the year 2023, this activity decreased in -6.6%, due to a lower production of the textile and leather industries (-17.7%); wood and furniture (-11.1%); metallic products (-10.7%); fabrication of non-metallic mineral products (-8.7%); food (-7.1%); paper manufacture, printing and playback of recordings (-6.8%); other manufacturing industries (-4.8%) and basic metal products (-1.4%). Meanwhile, the chemical industry presented a growth of 1.4%.

The activity Electricity, Gas and Water grew in 1.4% before the increase of the production of electricity, gas (1.5%) and water (1.2%) subsectors. During the year 2023, the electricity, gas and water activity registered a growth of 3.7%, due to the great performance of the electricity and gas subsector (4.1%) and water subsector (1.5%).

The Construction activity decreased in -4.,5% due to the lower execution of works of the private and public sectors. On the other hand, at the end of the year 2023, the construction activity registered a drop of -7.9% as a result of the lower execution of construction of buildings and works of road infrastructure such as roads, bridges and tunnels.

During the quarter under study, the Commerce activity grew in 1.6%, due to the favorable performance of the wholesale and retail commerce subsector (2.0%). On the other hand, the services of maintenance services and repair od automotive vehicles subsector decreased in -5.1%. During the year 2023, this activity increased in 2.4%.

The activity Transportation, Storage, Postal and Courier increased in 1.5%, explained by the favorable performance of the transportation (2.7%) subsector, counterbalanced by the lower demand of storage, postal and courier (-12.9%). During the year 2023, this sector accumulated a growth of 1.3% driven by the transportation subsector (2.1%), meanwhile, the storage, postal and courier services decreased (-9.0%).

The accommodation and restaurants activity grew in 1.2%, due to the growth of the accommodation subsectors (7.7%) and restaurants (0.6%). During the year 2023, the accommodation and restaurants activity registered a growth of 2.7%.

The Telecommunications and Other Information Services activity decreased in 3.9% due to the negative performance of telecommunications subsector (-4.2%) and the activity of other information services that registered a drop of -1.6%.

During the year 2023, the mentioned activity reduced in -5.8% due to the contraction of the demand of telecommunication services (-6.6%) and other information services (-0.9%).

During the fourth quarter of 2023, the activity of Financial, Insurance and Pension services decreased in -4.6% before the decrease in the activity of financial services (-5.4%) and insurance companies (-2.1%); nevertheless, these variations were attenuated by the growth of the services of administrators of pension funds (1.2%).

During the year 2023, the mentioned activity decreased in -6.0% compared to the last year explained by the greater contraction in the activity of financial services (-8.2%) and by the administrators of pension funds (-0.2%), counterbalanced by the growth of the services of insurance companies (8.1%).

The activity Services Provided to Companies reduced in -0.1% compared to the same period of the last year. On the other hand, the year 2023, the mentioned activity accumulated a growth of 0.5%

The activity of Public Administration and Defense grew in 3.3% explained by the greater services registered in: cases resolved in first and second instance with the Code of criminal procedure; police operations to reduce the crimes and misdemeanors; court proceedings of the superior courts of Justice; solved cases by preparatory investigation courts, courts of judging and criminal appeal chambers; customs clearance; patrolling by sector and public events monitored and controlled. This activity grew in 2023 in 2.9%.

The activity Other Services grew 2.0% compared to the same period of the last year. This behavior is explained by the favorable performance of all activities that are part of them, except for the services of public health. The activity other services gathering together the real estate services, housing rent, public and private education, public and private health, art, entertainment and recreation, repair of computers and personal assets and other activities of personal service.

During the year 2023, the activity other services registered a growth of 2.8%.

The sector Other Taxes to Products and Import Duties reduced in -2.3%, explained by the decrease of other taxes to products (-2.2%) and import duties (-3.1%). During the year 2023, this activity reduced in -2.5%.