GDP

Economy up by 4.25% in April, highest expansion in 13 months

Peru's economy grew by 4.25% in April driven by mining, fishing, manufacture and accumulated 69 months of continuous growth, informed INEI (National Institute of Statistics and Informatics).

 

From January to date, accumulated GDP growth averages 2.39%. In the last 12 months, the economy expanded by 1.74%.

The Head of INEI Alejandro Vilchez said the GDP achieved in April is the highest in the last 13 months. The result was driven by the higher domestic and foreign demand for some primary products, such as commodities: cotton, sugar and gold.

It should be noted, this year the economy grew by 1.68% in January, 0.94% in February and 2.68% in March.

He said the recovery of mining, manufacturing and fishing sectors contributed with 60% of the productive activity growth. Most of the sectors registered positive results, except agriculture and construction, he indicated.

Fishing

In the analyzed month, fishing grew by 154.03% mainly because of the anchovy season opening. Unload increased from 338,000 tonnes to 1,376,000 in April 2015.

Likewise, the unloading of species addressed to consumption either fresh (81.2%) and canned (52.8%) also contributed to the result.

Metal mining

Metal mining and hydrocarbons production grew by 9.25% and accumulated two months of positive results, since it was favored by new mining projects.

In April, metal mining subsector rose by 18.15%. It is the highest rate since February 2008 (86 months), which registered a growth of 20.1%. Whereas, hydrocarbons subsector reduced by 17.11% due to a lower natural gas liquid output (-23.7%), crude oil (-13.4%) and natural gas (-8.2%).

Manufacture

After 11 months of unfavorable results, this sector grew by 6.1%.

Construction and services

The sector decreased by 8.57% mainly because of a reduction in the execution of public works, such as road construction, maintenance and reparation, among others.

Nonetheless, the telecommunications sector showed a positive result by growing 6.3%. This was possible due to increases in people attending cinemas, TV shows production (17.1%), internet and cable (15.5%), as well as telephony services (7.4%).

Restaurants and lodging

The restaurants and lodging sector rose by 2.79% in comparison with the same month in 2014. This was possible thanks to a higher demand for lodging (3.99%) and restaurants (2.62%) subsectors.

The increase of the livestock output (5.61%) was due to a higher production of poultry, eggs, pork and fresh milk.

Peru Deputy Minister: GDP to expand by 5% in 2016

(Andina) Peru will expand above 5% in 2016 thanks to the construction of relevant infrastructure projects, such as the Lima Metro Line 2 and the Gasoducto Sur Peruano (Peru’s Southern Gas Pipeline), the Deputy Minister of Economy Enzo Defilippi forecasted.

“[…] we must construct, and this influences on the domestic demand,” he pointed out.

Total investments

The Deputy Minister indicated the Lima Metro Line 2 involves an investment worth US$6.783 billion.

Likewise, throughout previous months the government has unlocked infrastructure project investments worth US$1.051 billion, which will contribute a 0.54 percentage point to GDP in 2015.

Project

He indicated the unlocked amount comprises five projects: Lima Metro Line 2, Arequipa-based Majes Siguas II and the optical Fiber National Backbone, among others.

The investment of a total five projects amount US$8.019 billion; US$1.051 of which are to be executed this year.

It must be noted the Majes Siguas II project will allow opening up 38,500-hectare farmland to boost the country’s development by generating hydropower and 200,000 new jobs.