Gross Domestic Product grew 1.4% during the first quarter of 2024

During the first quarter of 2024, the Gross Domestic Product (GDP) increased in 1.4% compared to the same period of the year 2023, due to progress of the domestic demand (2.1%) and the export of goods and services (2.9%). This was announced by the National Institute of Statistics and Informatics (INEI) in the technical report Behavior of the Peruvian Economy.

In the document was stated that this result happens within a context of the increase of international prices of copper and gold that contributed to a greater production and export of our main mining resources. In addition, in Holly Week it was reported a greater provision of restaurants, hotels, transportation and commerce services, mainly.

The domestic demand expanded due to the greater expense in gross fixed investment (5.9%) and total consumption (1.8%).

Likewise, it was informed that the deseasonalized GDP increased in 0.8% compared to the last quarter.

From January to March of 2024, the private final consumption increased in 1.2% due to the increase of consumption of goods and services, associated to the increase of employment and income of families. At current prices, the private final consumption, during this period under analysis, represented 65.2% of the Gross Domestic Product and reached the amount of 160 mil 315 million of Soles.

According to the results of the Permanent Survey of National Employment (EPEN), the employment grew in 0.8%. Urban employment increased in 2.1%; meanwhile, the rural employment decreased in 4.5%. In addition, families reported greater incomes from work.

Final consumption expenditure of government increased in 5.0%, behavior that was caused by the significant expense in public and defense administration (8.3%); meanwhile, the consumption expenditure in public education (-0.2%) and public health (-1.2%).

Gross fixed investment grew in 5.9% driven by the growth of construction (5.1%) and greater purchases of machinery and equipment (7.0%).

Gross fixed investment increased as a result of the greater public investment (37.0%), in projects associated to construction of educational facilities, agriculture infrastructure and road infrastructure and acquisition of machinery and equipment, mainly. On the other hand, private investment reduced (-1,8%), nevertheless, mining and hydrocarbons investment increased.

During the first quarter of 2024, the exports of goods and services increased in 2.9% compared to the same period of the last year, among the products that were most often sold abroad were: other fruits (85.1%), gold ore (41.1%) and copper ore (3.7%).

On the other hand, the imports of goods and services increased in 5.7% as a result of greater purchases of crude oil (29.4%), transmission and communication equipment (26.2%), machinery for industry (19.6%), plastics, rubber and synthetic fibers (18.0%) and, synthetic organic colorants and prepared materials and other basic chemical substances (8.2%).

Agriculture, Livestock, Hunting and Forestry activity decreased in 0.7%, compared to the same quarter of the year 2023, due to the negative behavior of agriculture (-0.6%) and livestock (-0.9%) subsectors.

GDP of the Fishing and Aquaculture activity reduced in 29.4%, explained by the lower maritime (-32.8%) and continental origin (-8.3%) landing.

Gross value added of Extraction of Oil, Gas, Minerals and Related Services activity increased 7.6% before the greater extraction of minerals and related services (8.8%) and crude oil, natural gas and related services (0.9%).

Manufacture activity decreased in 6.1% due to the contraction of the main industries such as: the manufacturing of non-metallic mining products (-13.1%), foods (-11.4%), textile and leather (-9.1%), other manufacturing industries (-8.6%), manufacturing of metallic products (-5.2%), basic metal industries (-3.8%) and chemical (-1.4%). On the other hand, the paper, print and playback of recordings industry (10.7%), as well as wood and furniture industries (4.7%).

During the first quarter of 2024, Electricity, Gas and Water activity grew in 3.9% explained by the greater production of electricity and gas (3.8%) and water (4.3%) production.

Gross value added of Construction activity grew in 5.1% based by the greater execution of Works in public sectors such as roads, streets and paths, bridges and tunnels, among the main ones.

Commerce activity increased in 2.4% due to the positive performance of the wholesale and retail trade subsector (2.8%). Nevertheless, the maintenance services subsector and repair of automotive vehicles (-2.5%).

Gross value added of Transportation, Storage, Postal and Courier activity increased in 4.3%, mainly driven by the transportation subsector (4.8%). Nevertheless, it was registered a lower demand of the services of storage, postal and Courier subsector (-1.4%).

During the first quarter of 2024, the Accommodation and Restaurants activity increased in 3.6%, due the growth of accommodation (14.1%) and restaurants (2.9%) subsectors.

GDP of the Telecommunications and Other Information Services activity decreased in 0.6%, explained by the negative performance of telecommunications subsector (-1.0%). Nevertheless, the other information subsector showed an increase (1.6%).

The gross value added of Financial, Insurance and Pensions Services activity reduced in 4.9% mainly due to the decrease of financial services activity (-9.5%). Meanwhile, it grew the services of insurance companies (20.8%) and pension funds administration companies (8.0%).

The GDP of the Services Provided to Companies activity increased in 2.8% mainly driven by the greater demand of professional, scientific and technical services (2.8%).

Other Services activity increased in 2.3% due to the favorable performance of all activities that are part of it. This activity gathers together the real estate services, housing rent, public and private education, public and private health, among others.

Gross value added, at constant prices of 2007, of Public and Defense Administration activity grew in 3.7%, compared to the same period of the last year.

Other Taxes to Products and Import Duties sector grew in 0.8% due to the increase of other taxes to products (0.6%) and import duties (2.9%).