Mining upturn drives Peruvian economy in May: 1.83% growth

Mining in Peru experienced a rebound in the month of May, registering a growth of 1.83% in the Mining and Hydrocarbons sector, according to the technical report "Cyclical Advance of Economic Activity" from the National Institute of Statistics and Informatics (INEI). This growth represents a significant recovery compared to the previous month's decline of -4.34%. The positive results in the mining sector are mainly due to the production of metallic mining activity, which grew by 2.39%, driven by the extraction of minerals such as molybdenum, silver, iron, lead, tin, and gold. Despite these encouraging results, a decrease was observed in the extraction of zinc (-11.3%) and copper (-1.1%). In particular, copper production has experienced its fourth decline so far in 2024, posing challenges for this important sector of the Peruvian economy. The decrease in copper production has been a constant trend, with declines also recorded in the months of April, March, and January. In contrast to the positive performance of mining, the Hydrocarbons activity continued to show negative results in May, with a -1.68% decline. This negative trend has persisted in recent months, reflecting a decrease in the volume of crude oil extraction. Despite this decline, an increase was observed in the production of natural gas liquids and natural gas during the same period. On the other hand, the domestic consumption of cement also showed a slight reduction of 1.69% in May, attributed to a slower progress in private works and self-construction. This indicator reflects the activity in the construction sector, which plays a key role in the Peruvian economy. In a more positive outlook, fishery production experienced a notable growth of 329.16% in May, driven by increased extraction of marine species. This increase was favored by the continuation of the first fishing season, highlighting the capture of species such as anchovy for fishmeal and fish oil. In the Electricity sector, generation increased by 1.80% in May, driven by higher production of hydroelectric and renewable energies. Despite this growth, thermoelectric power generation experienced a decrease of -15.4%. In summary, the economic landscape of Peru in May was marked by the rebound in mining, especially in the extraction of metallic minerals, and the growth in fishery production. However, challenges persist in sectors like copper and hydrocarbons, which show a downward trend in production. Diversification of the economy and the promotion of sectors such as fishing and renewable energy generation will be key to maintaining sustainable growth in the country.