Peru’s Economy Shows Signs of Growth in January
Positive Growth in January
Peru’s economy saw a promising uptick in January, with the government’s INEI statistics agency reporting a 1.37% expansion compared to the same period last year. This growth brings hope for the nation to recover from a persistent recession.
Factors Driving Growth
The construction sector played a significant role in January’s expansion, posting a notable 13.16% growth. Additionally, the mining and hydrocarbons sector saw a 3.96% increase, with metals mining expanding by 4.98%. Despite this, overall mining production experienced a slight decline of 0.33%.
Challenges Faced
While certain sectors flourished, the fishing industry encountered a setback, contracting by 26.75% due to decreased anchovy volumes. This decline is particularly impactful as anchovy is crucial for producing fertilizer fishmeal, an area where Peru holds a prominent position.
Looking Ahead
Projections from the Peruvian central bank’s chief economist suggest a return to positive quarterly growth in the first quarter of the year after four consecutive quarters of decline. Factors such as inflation nearing the bank’s target range and reduced risks from the El Nino weather phenomenon are expected to contribute to this positive outlook.
