Peru economy expands 5.28% in the first quarter


Worth celebrating: People gathering at the annual Peruvian clown event in Lima last month. The GDP figure is well above the 1.4% growth predicted by analysts and government expectations of a 4% increase. — AP

LIMA: Peru’s gross domestic product (GDP) in the first quarter expanded 5.28% in April from a year earlier, according to the government’s INEI statistics agency the highest rate in 32 months.

The figure reversed the contraction logged in the prior month and was well above the 1.4% growth predicted by analysts polled by Reuters, also coming above government expectations of a 4% increase.

April’s expansion was supported mainly by a year-on-year increase of nearly 24% in agriculture and livestock production, and an expansion of 11.4% in the manufacturing sector, official data showed.

On the other hand, the key mining and hydrocarbons sector decreased by 4.34%, following more than a year of uninterrupted growth, due to a contraction of 4.5% in metallic mining activity.

The growth rate increase, highest since September 2021, comes as Peru’s government boosted its public spending by 29% between January and May, the economy ministry said in a press statement explaining the GDP data.

Economic activity is expected to remain dynamic in May, mainly driven by fishing and primary manufacturing given the extraordinary anchovy capture in the north-central zone, according to the document.

Last Friday, Economy Minister Jose Arista said Peru’s economy grew 4% in April and possibly in May as well, as the Andean economy seeks to emerge from a recession begun last year. — Reuters

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