The mining sector was the main driver of GDP, with growth of 8.87%. Meanwhile, the financial, agricultural and fishing sectors reported declines.
The Peruvian economy grew 3.53% in August 2024 compared to the same month last year and accumulated five consecutive months of expansion, the National Institute of Statistics and Informatics (INEI) reported today.
According to the National Institute of Statistics and Informatics, national production was boosted by the positive performance of 11 economic sectors.
The National Production technical report also indicated that between January and August 2024, economic activity grew by 2.88%, and in the annualized period (September 2023-August 2024), productive activity registered an expansion of 1.69%.
In April, the economy grew by 5.38%, in May by 5.15%, in June by 0.21% and in July by 4.47%, according to the INEI. Additionally, between January and August, Peru expanded in seven of the last eight months.
Evolution of sectors
During August 2024, the Mining and Hydrocarbons sector grew by 8.87%, due to the positive performance of metallic mining activity by 8.86%, driven by the higher level of production of copper (11.7%), molybdenum (42.4%) and silver (30%), mainly, supported by the upward evolution of the hydrocarbon subsector by 8.96%, based on the higher volume of exploitation of natural gas liquids (12.8%), natural gas (9.5%) and crude oil (2.5%).
Manufacturing sector output increased by 2.20%, according to figures from the Ministry of Production. By component, the non-primary manufacturing subsector grew by 3.24%, while the primary manufacturing subsector decreased by 0.96%.
The increase in the non-primary manufacturing subsector was explained by the increase in production in the consumer goods industry (8.95%), a result that was attenuated by the contractionary behavior of the intermediate goods industry (-0.72%) and capital goods (-8.41%).
The unfavorable performance of the primary manufacturing subsector was determined by the lower activity in the branch of processing and preserving fish, crustaceans and mollusks (-19.4%), and the manufacturing of petroleum refining products (-14.4%).
The Electricity, Gas and Water sector grew by 2.08% due to increased electricity generation (2.57%), while gas distribution (-4.45%) and water production (-0.38%) decreased.
The electricity subsector increased due to the growing generation of hydroelectric energy (16.7%) and non-conventional renewable energy (95.5%), while the generation of electricity from thermoelectric sources was affected (-13.4%).
Gas distribution was reduced as a result of lower demand from Electric Generators (-10%), while demand from Natural Gas Vehicle sales establishments (11.8%) and companies (3.8%) increased.
The water subsector contracted mainly due to lower production of drinking water by the companies Seda Chimbote (-4%), Sedapal (-2.5%), EPS Grau (-0.2%) and Sedapar (-0.1%).
Construction and trade on the rise
The construction sector grew by 4.14%, reflected in domestic consumption of cement (0.25%) and the physical progress of public works (17.24%).
The slight increase in domestic cement consumption is associated with a slow progress in private sector construction projects. This was the case for civil engineering works in mining, hydrocarbon, power generation, agro-industrial, customs and industrial storage, multi-family building projects, among others.
On the other hand, the increase in the physical progress of public works was observed in all three levels of government. Thus, there was an increase in risk prevention works, road infrastructure, construction of non-residential buildings and basic services.
Meanwhile, during August 2024, the Commerce sector grew by 2.86%, driven by the increased sale of goods in the wholesale (3.39%) and retail (3.20%) channels. Meanwhile, the sale and repair of vehicles decreased (-2.55%).
The dynamism of wholesale sales was reported in the computer sector, due to higher tenders, equipment renewal and software updates; fuel and lubricants; household goods, given the high turnover of household appliances (electronic audio and video devices, stationery and text articles, white goods, pharmaceutical and medicinal products, personal care products); and heavy machinery, electrical equipment, industrial equipment and transportation equipment.
Retail sales were influenced by sales of computers and telecommunications equipment, driven by campaigns and promotions; sales in supermarkets and minimarkets due to the opening of new stores; and increased fuel consumption at gas stations and self-service stores.
Likewise, the INEI reported that the Transport, Storage and Messaging sector advanced 6.28% due to the favorable result of the Transport (5.14%) and Storage and Messaging (9.46%) subsectors.
The Accommodation and Restaurants sector expanded by 7.53%, supported by the expansion of the restaurants (7.54%) and accommodation (6.14%) subsectors.
The development of the sector was favored by the long holiday on the occasion of Santa Rosa de Lima Day and the various gastronomic fairs, among others.
The Telecommunications and Other Information Services sector grew by 0.13%, explained by the positive performance of the subsectors: telecommunications (0.11%) and other information services (0.25%).
The telecommunications subsector reported growth in Internet and subscription television services (5.9%), while telephone services and data transmission services decreased by 2.6% and 2.5%, respectively.
Bad month for the agricultural sector
The agricultural sector decreased by 2.29% in August 2024 compared to the same month of the previous year.
Likewise, the agricultural subsector decreased by 5.25%, due to lower production volumes of olives (-98.6%), raw cotton (-97.7%), starchy corn (-30.8%), dry beans (-26.1%), potatoes (-24.6%), avocado (-18.7%) and cocoa (-11.3%).
These drops in production are explained by the smaller planted areas, coupled with adverse weather conditions.
On the other hand, the livestock subsector grew by 1.85%, driven by higher production volumes of pork (3%), poultry (2.8%), beef (0.8%) and fresh milk (0.4%).
However, between the months of January and August 2024, this activity showed an increase of 2.65%.
The Fishing sector, for its part, decreased by 27.78%, explained by the lower landings of maritime origin (-27.09%) and continental origin (-33.08%).
Finally, after two months of slight growth, production in the Financial and Insurance sector decreased by 1.24% due to lower loans (-2.39%) granted by multiple banks.
