Peru’s economy, which was once a standout performer in Latin America, experienced a 0.55% contraction last year due to the negative impacts of the El Niño weather phenomenon and decreased private investment in mining. In February, however, the growth rate exceeded analysts’ expectations by coming in at 2.10%, compared to a forecast of 2%-3% by the country’s economy minister. This marked the largest monthly growth rate since June 2019 according to INEI records.
Peru’s mining and hydrocarbons sector saw significant expansion in February with a growth rate of nearly 16%. The increase was driven by increased copper, gold, and molybdenum volumes, contributing to an impressive 17% growth in metals mining. Peru is a major global producer of copper, silver, and zinc, and the mining sector has been growing for 13 consecutive months. On the other hand, the manufacturing sector declined by 10.92%, while the fishing sector shrank by a massive 31.26% due to significant decreases in anchovy volumes.
The decline of the fishing sector was attributed to sharp drops in anchovy numbers which are crucial for making fishmeal fertilizer – an industry where Peru is leading producer . Additionally, there was also a decrease of nearly 2% in the agricultural sector despite these challenges. However, Economy Minister Jose Arista expressed optimism for March projecting a potential increase of private investment by around 2%, along with an expected growth rate of around 8% for public investment. The World Bank has forecasted that Peru’s economy will experience growth of around 2.7% in
