Economic growth in Peru in January: Construction and Mining lead, but challenges persist

In January 2024, national production in Peru recorded a growth of 1.37%, driven by various economic sectors, according to the technical report presented by the National Institute of Statistics and Informatics (INEI). This increase is mainly attributed to sectors such as Construction, Mining and Hydrocarbons, Transportation, Commerce, Accommodation and Restaurants, Electricity, Gas and Water, Business Services, and Other services. The Construction sector stood out by leading this growth with an increase of 13.16%, driven by the rise in domestic cement consumption and the physical progress of public works. After 16 months of contraction, domestic cement consumption showed a positive variation, thanks to the continuity of private projects. On the other hand, the Mining and Hydrocarbons sector experienced a growth of 3.96%, driven by the expansion of metallic mining activity and hydrocarbons. This growth was supported by the higher production volume of metals such as gold, silver, and molybdenum, as well as the exploitation of crude oil. As for the Transportation, Storage, and Courier sector, there was an increase of 5.12%, with growth highlighted in the subsectors of land, air, and water transport. Despite this growth, the storage and courier subsector showed a decrease. The Commerce sector also contributed to economic growth with an increase of 2.38%, driven by wholesale sales of fuel, machinery, and equipment for various sectors. Likewise, the Electricity, Gas, and Water sector grew by 3.73% due to increased electricity generation and water production. However, not all sectors experienced positive growth in January. Sectors such as Fisheries, Agriculture, and Manufacturing showed decreases in their production. Fisheries were the most affected sector with a decrease of 26.75%, followed by Agriculture with a reduction of 2.84% and Manufacturing with a decrease of 4.23%. In this context, guilds and sectors related to illegal mining have requested the Executive to review the Congress's decision to repeal a measure against this practice, citing possible negative impacts on the environment and the country's economy. The Peruvian economy faces a mixed outlook at the beginning of this year, with key sectors showing positive growth, but also challenges in sectors that have experienced contractions in their production. It is essential for authorities, the private sector, and society as a whole to work together to promote sustainable and equitable growth in the country.