Peru’s Economy Bounces Back with 5.28% GDP Growth in April

Peru’s economy is showing signs of recovery as its gross domestic product expanded by 5.28% in April compared to the same time last year, marking the highest rate of growth in 32 months, according to government statistics agency INEI. This 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 an 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 remain strong in May, driven by fishing and primary manufacturing, particularly in light of exceptional anchovy capture in the north-central region. The government’s efforts to boost economic activity and positive performance in key sectors are contributing to Peru’s economic growth trajectory.

Economy Minister Jose Arista mentioned on Friday that Peru’s economy likely grew by 4% in both April and May, as the country works towards recovering from the recession that began last year. The government has been implementing measures to stimulate economic activity, such as increasing public spending by 29% between January and May, as noted by the economy ministry.