Peru’s economy grew by 11.4% in the first months of the Castillo government

Inflation in Colombia in October was 0.01%

Lima, Nov 22 (EFE) .- Peru’s economy grew 11.4% during the first months of the government chaired by the leftist Pedro Castillo, encouraged by the dynamism of domestic demand, the recovery of the world economy and the measures of reactivation after the strong impact of the covid-19 pandemic. The quarterly figures of the Gross Domestic Product (GDP) offered this Monday by the National Institute of Statistics and Informatics (INEI) comprise, for the first time, the first weeks of the regime that on July 28 replaced the transitional Government chaired by Francisco Sagasti . In this regard, the head of the Institute of Economics and Business Development (Iedep) of the Lima Chamber of Commerce (CCL), Óscar Chávez, told Efe that “it is clear that the secondary sector of the economy is driving” this growth in Peru. , after the very harsh impact that the covid-19 pandemic generated in 2020. “I am referring to both manufacturing and construction, which are leading growth and are allowing GDP to get closer and closer to a rate that allows it to recover pre-pandemic production levels earlier than expected,” he said. VARIOUS FACTORS The INEI technical report detailed that the increase from July to September, compared to the same quarter of the previous year, was explained by the dynamism of components of domestic demand, such as household consumption (11.8%) and of the Government (6.6%), as well as by fixed gross investment (24.1%). This result was contributed by the recovery of the world economy and, in particular, of the country’s main trading partners, whose higher demand had an impact on better prices and a 9.2% growth in the volume of exports of goods and services. In turn, the Central Reserve Bank (BCR) stated that this growth was driven by the resumption of most activities and the relaxation of sanitary control measures, the continuation of the monetary and fiscal stimulus, and the recovery of various indicators of consumption and investment, although attenuated by greater business uncertainty. Chávez commented, in this sense, that economic agents hope that the conditions of the country’s recovery will continue, since “the issue of control of the pandemic and political factors that can stop the reactivation is always pending.” He added that the CCL estimates that Peru can close this year with a growth of 12.8%, if the momentum of the “rebound effect” generated by the increasing normalization of productive and economic activities is taken into account. ANNUAL GROWTH OF 17.5% In this sense, the INEI pointed out that in the third quarter of this year the Peruvian economy accumulated a growth of 17.5%, while in the last four quarters the increase was 11.9%. Private final consumption expenditure increased by 11.8%, mainly after the increase in production and employment since, according to the preliminary results of the National Household Survey (ENAHO), the employed population increased by 16.9% and real average earnings from work at 14.8%. The government’s final consumption expenditure also increased by 6.6% due to higher consumption in public administration and defense (8.2%), public health (7%) and public education (5.8%). In the third quarter, gross fixed investment expanded by 24.1%, explained by the growth, by 23.7%, of construction and the increased acquisitions of machinery and equipment by 24.8%. In addition, exports of goods and services increased by 9.2%, due to the greater demand for traditional and non-traditional products, and imports rose 30.5%, due to greater purchases of consumer goods, raw materials and intermediate products , and capital goods. THE SITUATION BY ECONOMIC ACTIVITY The INEI detailed that the gross added value of agriculture, livestock, hunting and forestry grew 9.7%, while fishing and aquaculture fell 37.9% and the extraction of oil, gas and minerals increased by 4.4%. In turn, manufacturing increased by 8.4%, electricity, gas and water by 6.3%, construction by 23.2%, and trade, maintenance and repair of motor vehicles and motorcycles by 10%. Transport, storage, mail and courier activity grew by 31.6%, accommodation and restaurants by 99.4%, telecommunications and other information services by 7.2%, financial services, insurance and pensions in 3.5% and that of services rendered to companies in 13.9%. Given these figures, Chávez remarked that Peru still has pending the recovery of the mining sector, which “needed to grow this year around 15.2%” and, according to the projection of his organization, “it will not reach 10%”. The expert said that in an international context of high mineral prices, this “should be a sector that grows more and contributes to economic growth by 2022,” when the CCL projects that Peru will achieve a GDP of 3.1%.

(c) EFE Agency

Article Source