In 2023, Peru’s economy encountered challenges, experiencing a 0.57% decline from January to November.
Yet, November showed a 0.29% rise, suggesting a possible end to the recession. This data comes from Peru’s National Statistics Institute INEI.
The overall performance from late 2022 to late 2023 decreased by 0.42%. Positive growth happened in only three months.
March and April saw slight increases after early-year protests and natural disasters. A similar upturn occurred in November.
Key sectors influenced these changes. Agriculture grew by 1.19%, while Fisheries surged by 60.9%.
Mining and Hydrocarbons increased by 8.04%. Other sectors like Electricity, Gas, Water, Trade, and Transport also improved. Government and Other Services rose by 3.30%.
However, some areas struggled. Manufacturing dipped by 0.51%, and Construction fell by 8.05%.
Accommodation and Restaurants barely changed. Telecommunications and Financial Services both saw declines.
Construction’s downturn was due to less cement use and weak private investment. Public works varied, with local projects decreasing but national and regional ones growing.
The Fisheries sector faced the most difficulties, dropping by 13.60%. Construction and Finance were also hard hit.
Reduced lending and deposits contributed to their struggles.
On the brighter side, Mining, Electricity, Gas, Water, and Trade helped the economy. They showed solid gains, balancing out the declines in other areas.
Background
This performance reflects Peru’s economic resilience. Historically, Peru has bounced back from downturns.
Key industries like Mining and Agriculture often lead recoveries. In 2023, their growth helped offset losses in other areas.
Global events also impact Peru’s economy. For example, world market trends can affect export-driven sectors.
This year’s growth in Fisheries and Mining shows this connection.
Government policies play a crucial role too. Investment in public works and sector support can stimulate growth.
This was evident in the rise of national and regional projects. Moving forward, Peru’s focus on diverse sectors could ensure more stable growth.