Background on Peru’s Economic Performance
Peru’s economy expanded by 4.67% year-on-year in March, marking the highest monthly growth since December and continuing a streak of consecutive monthly advances that has lasted nearly a year. This information was reported by the National Institute of Statistics and Informatics (INEI) on Thursday.
Key Figures and Context
- The 4.67% growth rate surpassed the 4.45% estimate by analysts surveyed by Reuters and the 2.68% growth rate in February of this year.
- Between January and March, Peru’s economy grew by 3.92%, compared to 1.46% growth in the same period last year.
- The 12-month interannual growth rate for the economy until March was 3.95%.
Government Changes and Economic Performance
These positive economic figures come shortly after a partial reshuffle of the Peruvian government’s cabinet, during which José Salardi, the Minister of Economy, was replaced by Raúl Pérez, who previously served as the Minister of Transportation and Communications.
Salardi’s departure, which lasted only 100 days in a country with high turnover among public officials, was criticized by analysts and business groups. Salardi had initiated a plan to enhance state efficiency through the fusion of certain entities and a program to boost investment in public and private projects.
Sectoral Performance
According to INEI, the fishing sector saw a significant rebound in March, growing by 29.12% year-on-year. The construction and manufacturing sectors also expanded, with growth rates of 5.22% and 3.2%, respectively.
The crucial mining and hydrocarbons sector advanced by 7.04% year-on-year in March, following a decline the previous month. This growth was primarily due to increased production of copper, zinc, molybdenum, silver, and lead. Peru is the world’s third-largest copper producer.
Government Expectations and Historical Growth
The Peruvian government anticipates an economic expansion between 3.5% and 4% for the current year, which would be one of the highest growth rates in Latin America. In 2023, Peru’s economy grew by 3.3%.
Key Questions and Answers
- What was Peru’s economic growth rate in March 2024? The economy expanded by 4.67% year-on-year in March.
- How does this growth compare to analyst estimates and previous months? The actual growth rate surpassed the 4.45% estimate by Reuters-surveyed analysts and the 2.68% growth rate in February.
- What are the key sectors contributing to this growth? The fishing sector grew by 29.12% year-on-year, while construction and manufacturing sectors expanded by 5.22% and 3.2%, respectively.
- What recent changes occurred in Peru’s government? José Salardi, the Minister of Economy, was replaced by Raúl Pérez, formerly the Minister of Transportation and Communications.
- What are Peru’s economic growth expectations for 2024? The government expects an expansion between 3.5% and 4%, which would be one of the highest growth rates in Latin America.
