National production decreased 0.28% in March of 2024

National production reduced in 0.28%, during March of the current year, compared to the same month of the last year, explained by the negative performance mainly of the Manufacturing sector, and in lower measurement of Financial and Insurance, Construction, Fishing and Telecommunications sector. The National Institute of Statistics and Informatics (INEI), in the technical report National Production, informed that between January- March of 2024, the economic activity of the country grew 1.38%. Meanwhile that in the las twelve months (April 2023-March 2024) the national economy contracted in 0.09%.

The national production of the majority of economic sectors, in March 2024, as affected by two days of productive activity because Holly Week was scheduled in March 28 and 29 2024, meanwhile in 2023 the Holly Week was celebrated in April 06 and 07.

The Agricultural production grew in 1.08%due to the positive result of the agricultural subsector (2.33%); nevertheless, the livestock subsector reduced (-0.81%).

Therefore, there were registered greater volumes of paprika (112.3%), oil pal (22.9%), avocado (20.5%), hard yellow corn (20.2%), potato (16.7%), alfalfa (13.0%) and paddy rice (12.2%); before the greatest area sown and favorable weather conditions that allowed the development of crops. The livestock subsector (-0.81%) decreased the poultry production (-1.9%), eggs (-1.4%), llama (-0.8%) and fresh milk (-0.7%).

The INEI informed that the Fishing sector contracted in 32.48% due to the lower extraction of species of maritime origin (-35.97%), for direct human consumption (-36.12%); of species intended to frozen (-63.1%), for preparing to be canned (-47.6%) and preparing to be cured (-7.0%); meanwhile, the capture of species destined to consumption in fresh state (4.9%).

On the other hand, the fishing for indirect human consumption (anchovy for fishmeal and fish oil) reached 800 tons that compared with 28 tons registered in March 2023, it means an increase of 772 tons. The fishing of continental origin contracted 13.02% due to lower extraction of species in fresh state, for frozen and for preparation to be cured.

During the third month of the current year, the Mining and Hydrocarbons sector grew in 2.60% due to the progress of metal mining activity in 4.00% associated to the greater volume production of molybdenum (16.8%), zinc (8.7%), gold (7.6%), iron (7.3%) and copper (0.9%).

On the other hand, the hydrocarbons subsector decreased in 5.31% as a result of the lower exploitation of three component products, specially of natural gas (-7.3%) and crude petroleum (-5.9%).

Manufacturing sector reduced in 9.63%, accounting 14 months of unfavorable behavior, based in the lower activity of the non-primary manufacturing in -8.25% and the primary manufacturing subsector in -13.88%. It must be noted that the result of manufacturing sector during the month under analysis subtracted more than one percentage point to the result of the global productive activity.

In the primary manufacturing subsector was observed the lower activity in the preparation and conservation of fish, crustaceans and molluscs with -73.5%; the preparation of sugar in -22.2% and the manufacturing of products of oil refining in -7.3%. Nevertheless, the manufacturing of primary products of precious metals and other non-ferrous metals in 2.4%, as well as the development and preservation of meat in 1.5%. The contraction non-primary manufacturing subsector (-8.25%) was supported in the lower activity registered by the industry of intermediate goods (-11.60%), industry of consumption goods (-4.80%) and industry of capital goods (-4.20%).

The electricity, Gas and Water sector increased in 0.16% based in the greater production of water (3.87%); nevertheless, the generation of electric energy (-0.33%) and gas distribution (-0.41%) decreased. The electricity subsector decreased due to the lower generation of thermoelectric origin energy (-23.6%); In contrast, showed progress the production of hydroelectric origin (9.9%) and non-conventional renewable energy (122.2%).

Water production was driven by the greater generation of companies such as EPS Grau (14.2%), Epsel (11.6%), Sedalib (11.1%) and Sedapal (2.9%). On the other hand, the gas distribution reduced due to the lower demand of Power Generators (-2.6%); meanwhile, the demand of Companies (8.2%) and establishments where Vehicular Natural Gas (3.9%) is sold.

In March 2024, Construction sector decreased in 2.48%, reflected in the lower domestic cement consumption (-7.00%). Nevertheless, the physical progress of public works grew (11.39%).

Domestic cement consumption was affected by the lower execution of private works. Otherwise, the physical progress of public works increased, in the national and regional level, in projects of risks prevention; road infrastructure; construction of non-residential buildings and projects of basic services.

During March of 2024, Commerce sector increased in 1.82% due to the dynamism of wholesale (2.31%) influenced by the commercialization of electronic telecommunications equipment (telephone and communications equipment); sale of fuel mainly targeted to mining sector, retail supply stores and distribution of domestic gas; sale of computers, peripheral equipment and computer programs due to greater rotation of hardware and software; among the main ones.

The growth of retail sale in 2.32% was directly related to the greater commercialization of sport articles; greater supply of fuels in gas stations and self-services facilities; sale of agrochemical products, fertilizers and optical articles. Nevertheless, the automotive commerce due to the lower sale of vehicles, parts and pieces (pneumatics), and the sale, maintenance and repair of motorcycles and its parts, pieces and accessories.

Transportation, Storage and Courier sector showed an increase of 2.97% before the dynamism of the Transportation subsector (5.87%). Nevertheless, the Storage and Courier subsector decreased (-3.91%).

In the behavior of transportation subsector came into play the positive performance of transportation by air (14.38%), driven by the greater movement of passengers; of transportation by road and pipelines (2.79%), due to the greater road travel of passengers (4.6%) and cargo (0.3%), transportation by rail (22.64%), before the greater traffic of passengers. Also, the transportation by sea and by river route.

The contraction of the storage and Courier subsector was explained by the lower storage service and activities of support to the transportation (-3.60%) and reduction of post activities and courier service (-9.70%).

Accommodation and Restaurants sector increased in 5.62% due to the dynamism of restaurants (5.32%) and accommodations (14.69%) subsectors. The performance of restaurants subsector was based in the opening of franchises, special deals due to Cyber Days week, celebration of Women’s Day and Holly Week. Business of restaurants (2.71%) that showed greater dynamism were touristic restaurants, restaurants, Cevicherias (seafood restaurants), Chifas (Chinese food restaurants), Pollerías (grilled chicken restaurants) and fast food restaurants, among others. Likewise, it showed a positive trend the services of concessionaires (17.12%), of beverages (2.59%) and catering service (3.94%).

Accommodation subsector grew in 14.69% due to the increase of national and foreign tourists with greater visitor flow during the holydays of the long Holly Week.

During March of the current year, Telecommunication and Other Information Services reduced in 0.93%, as a consequence of the negative behavior of the telecommunications subsector (-1.15%); nevertheless, other information services positively evolved (0.39%).

The decrease of the telecommunications subsector was determined due to the lower service of data transmission (-14.2%) and telephone services (-3.5%). On the other hand, it increased the Internet services and Pay TV services (4.8%).

In the other information services subsector grew the activities of production and exhibition of films and TV programs (5.1%); as well as TV and radio programming (0.3%). On the other hand, the activities of computer (-0.7%) and edition (-0,2%) programming decreased.

Financial and Insurance sector decreased in 5.22% influenced by the lower credits of multiple banking (-5.03%). According to segment, the credits targeted to big, medium, small corporations and microenterprises (-8.5%) and consumption credits (-0.5%) decreased. Meanwhile, the granting of mortgage credits increased (2.1%).

By economic sectors, the credits targeted to the manufacturing; commerce; agriculture; livestock; hunting and silviculture industry; transportation; storage and communications; retail; entrepreneurial and renting activities; financial intermediation decreased; as well as the activities destined to hotels and restaurants.

On the other hand, the deposits of multiple banking such as: Demand deposits (6.9%) and Time Deposits (3.6%) increased; nevertheless, the deposits in the segment of Compensation for Time of Service (-12.0%) and Savings Deposit (-5.6%) contracted.

Services Provided to Companies increased 3.54% based on the positive result of travel agencies and tour operators driven by the sale of travel packages and domestic and international flights, variety of special deals due to Cyber Days and Holly Week travels; followed of advertising and market research, favored by campaigns beginning of school year and long holiday, development of interactive marketing strategies and of influential persons (influencers), digital design, commercial production for traditional media (radio and TV) and rental of advertising panels in public roads.

Likewise, professional, scientific and technical activities grew due to the opening of new stages of projects, approved tenders, implementation of new engineering studies, award of new service orders, increase of mining labors, as well as, entrepreneurial consulting, business strategies and assessment in PYMES financing.

The INEI informed that Government Services increased 3.86% explained by the greater service of entities of Public Administration (3.8%), Defense (4,1%) and Other government services (3.4%).