Economy of 18 departments grew in the first quarter of 2024

The economy of 18 departments of Peru registered a favorable performance during the first quarter of 2024. From the total, 14 departments got higher rates than national average (1.4%), among those that outstood were: Moquegua (15.2%) and Ancash (4.1%), due to the contribution of mining, agricultural and electricity activity; followed by Tacna (14.1%), Cusco (6.8%) and Loreto (5.9%), based in the mining and hydrocarbons, construction and commerce sectors; Huancavelica (13.4%), Puno (10.8%) and La Libertad (2.3%), due to mining, agricultural and construction activities. Meanwhile, in Lima (0.4%) slightly increased below the of the country’s economy encouraged by the commerce, transportation and mining sector.

This was informed by the National Institute of Statistics and Informatics (INEI), through the technical report Indicator of the Productive Activity by Department. It was stated that together, these nine departments contributed with the 64.2% of the total of the national production.

It also stated that on the contrary, six departments registered a negative performance. Those departments are: Piura (-8.6%), Amazonas (1.3%) and Lambayeque (-0.2%), due to a retreat of the agricultural, construction and telecommunication activities; Junín (-3.9%) and Arequipa (-1.7%), due to mining, manufacturing and telecommunications sectors; such as Tumbes (-3.3%), as a consequence of the downturn of the manufacturing, construction and telecommunications activities.

The production of Moquegua grew 15.2%, showing a dynamism by seven quarters in a row, driven by the mining activity a result of the expansion of volumes extracted of copper and molybdenum of the companies Anglo American Quellaveco and Southern Perú Copper Corporation (mine Cuajone).

Likewise, it increased the production of silver and gold. In the southern department also was registered an increase of the Electricity sector, due to the greater generation of electric energy in the solar power stations of Rubí and Intipampa, and the Agricultural sector that reflected higher crops intended to external market and agroindustry such as grape, avocado and hard yellow corn; as well as the crops intended to domestic market, such as alfalfa and starchy maize.

The economy of the department of Tacna increased in 14.1% and accumulated three quarters in a row of growth, as a result of the mining activity before the increased extraction of copper, molybdenum and silver by Southern Perú Copper Corporation (mine Toquepala).

Contributed with the good performance of Tacna the expansion of the Construction sector, due to the physical progress in the three levels of government and Transportation sector, due to the dynamics of the inland transportation service of passengers caused by different festivities (celebration of the Carnival of Tarata, the Carnival of Huanuara, the parade of the International Carnival of Tacna and the festivity of Holy Week).

The economy of the department of Huancavelica expanded in 13.4%, registered a positive trend by two quarters in a row, determined by the Electricity sector before the greater generation of electric energy in the hydraulic power station of Cerro del Águila, Mantaro (Antúnez de Mayolo) and Restitución.

In addition, it also had a good performance the mining activity, driven by the increase of the extraction of copper in the company Operadores Concentrados Peruanos (mine Cobriza) and the obtained by the companies Minería Corporativa and Compañía Minera Kolpa and the Agriculture sector that was explained by the agricultural subsector, reflecting in the greater crops of potato, avocado, green peas and ullucus.

The economy of Puno grew in 10.8%, after reporting negative results in the four quarters of 2023, influenced by the mining activity that registered a high extraction of tin in the Minsur company; likewise, it increased the production of zinc, lead and silver. At the same time, the Construction sector expanded by the physical progress of works in the three levels of government. In addition, it increased the Agricultural sector, based in the agricultural subsector, due to the greater crops intended to the domestic market such as alfalfa, potato, broad bean and oca.

The productive activity of Cuzco increased in 6.8%, showed a positive performance by six continuous periods, based in the Mining and Hydrocarbons sector that evidenced a greater extraction of gold and silver in the Mining Company Antapaccay and Hudbay Perú; as well as copper and molybdenum. Nevertheless, it reduced the hydrocarbons subsector, due to the low exploitation of liquids of natural gas and natural gas in the Lots 56 and 88.

In addition, it expanded the Construction sector determined by the physical progress of works in the three levels of government, and the Transportation sector, reflected in the dynamism of the air transport service; rail transport and inland transport of passengers and cargo, before the number of local visitors and tourist for the celebration of Holly Week.

The economy of Loreto increased in 5.9%, registering a favorable performance by two quarters in a row, influenced by the hydrocarbon subsector, which was explained by the increase of the exploitation of crude oil in the Lot 95 of the company PetroTal caused by the setting up of their new oil wells, 16H and 17H (Campo Bretaña Norte).

In addition, it increased the Construction sector, associated to the investment of Local Governments and Transportation sector, based in the service of river transport, inland transport of passengers (mobilization of tourists by local festivities) and the dynamism of the pipeline transportation.

The production of Ancash increased in 4.1%, showing a growth during two quarters in a row, driven by the mining activity that registered greater extraction of molybdenum and copper in the Mining Company Antamina, in addition of the lead mineral; meanwhile, it decreased the obtention of zinc, silver and gold.

Other sectors that grew were the Agricultural, that was favored by the increase of their main crops destined to the foreign country and agroindustry (blueberries, sugar cane, hard yellow corn and asparagus) and of their crops destined to the domestic market (paddy rice and maize) and Electricity, Gas and Water sector, due to the superior generation of electric energy in the hydraulic power stations of Cañón del Pato and Quitaracsa, as well as the thermic power station of San Jacinto and the production of potable water in the company SEDACHIMBOTE S.A.

The productive activity of the department of La Libertad increased in 2.3%, after registered three periods in a row with negative trend, driven by the Construction sector, that showed the physical progress of the National Government in infrastructure of protection against floods in the creek of the basins El León and Cerro Centinela of the districts La Esperanza, Huanchaco and Laredo, respectively (Trujillo). In addition, it grew the mining activity based in the greater extraction of gold in the companies Minera Boroo Misquichilca, Compañía Minera Poderosa and Consorcio Minero Horizonte; linked to the production of silver.

The same performance showed the Agricultural sector before the expansion of its main crops destined to the foreign market and agroindustry, blueberries and asparagus; as well as the crops destined to the domestic market, potato and watermelon.

The economy of the department of Lima registered a slight recovery of 0.4%, after registering a negative result during the four quarters of 2023, favored by the Commerce sector before the increased wholesale trade of solid, liquid and gas fuels and allied products; and the wholesale trade of other type of machinery and equipment.

The Transportation sector was incentivized by the air transportation of passengers, associated to the opening of routes by the Sky and JetSmart Airlines, Lima-Montevideo and Lima-Quito, respectively; the transportation of passengers and cargo by highway both by province as well as urban (vacations season and summer season and celebration of Holly Week); and the transportation of maritime cargo of public and private use. In addition, the Agricultural sector was driven by the greater production of paprika, avocado and hard yellow corn (destined to the foreign market and agroindustry); as well as the passion fruit and the sweet potato (domestic market).

The production of the department of Piura decreased in 8.6%, registering an unfavorable performance by two quarters in a row, affected by the Manufacturing sector, as a consequence of the lower preparation of frozen fish fillets in Paita Port (before the poor availability of maritime species) and the null production of fishmeal and fish oil due to closed season of anchovy.

It also contracted the Agricultural sector due to the lower production of mango, grape, paddy rice and dried Caupí bean, in contrast to the growth of the growth of crops such as blueberries, banana, sugar cane and hard yellow corn. Meanwhile, in the Construction sector reduced the investment of the National Government in works of the support hospital II-2 Sullana, district and province of Sullana; and works of education infrastructure in the district of Catacaos, province of Piura. Likewise, it decreased the Mining and Hydrocarbons sector before the lower exploitation of crude oil in the Lots X, IV and XIII; in addition of the natural gas in the Lots X, Z-69, II, XIII, IV and I.

By geographic zones, the good performance of the productive activity of the country, was driven by the greater production registered in the South zone (5.7%), due to the greater contribution of the Mining and Hydrocarbons sectors, of the mining unit Quellaveco placed in Moquegua, as well as the Construction and Agricultural sector.

The East zone (3.5%) was driven by the Construction, Mining and Hydrocarbons and Transportation sectors. The Center zone (0.8%) in the Mining and Hydrocarbons, Commerce and Transportation sectors. Meanwhile, it decreased in the North zone (-2.1%) before the reduction of the Manufacturing, Agricultural and Fishing sectors, basically.