Peru’s GDP expanded by 5.28% in April compared to the same time last year, marking the highest rate of growth in 32 months, according to the government’s INEI statistics agency. This figure was a significant improvement from the previous month, which saw a contraction, and exceeded the 1.4% growth forecasted by analysts and the government’s own expectations of a 4% increase.
The growth in April was mainly driven by a nearly 24% increase in agriculture and livestock production, along with an 11.4% expansion in the manufacturing sector, as shown by official data. However, the mining and hydrocarbons sector experienced a decline of 4.34%, breaking a streak of continuous growth of over a year, primarily due to a 4.5% decrease in metallic mining activity.
Peru’s economy is expected to continue its upward trajectory thanks to positive performance in key sectors and government efforts to boost economic activity. The government’s press release on GDP data noted that public spending increased by 29% between January and May, which contributed significantly to Peru’s economic growth surge. Additionally, exceptional anchovy capture in the north-central region is expected to drive fishing and primary manufacturing activities in May, further contributing to economic strength.
According to Economy Minister Jose Arista on Friday, Peru’s economy likely grew by 4% in both April and May as it works towards recovering from the recession that began last year. The positive news comes after several months of declining economic performance due to COVID-19 restrictions and other factors
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