Peru’s Economic Growth in July

LIMA (Reuters) – Peru’s economy expanded for the fourth consecutive month in July, as reported by official data on Sunday. This growth, fueled by all sectors except agriculture, reflects the country’s recovery from last year’s recession.

According to the INEI statistics agency, July saw a 4.47% year-on-year growth, surpassing the central bank’s economist estimate of around 4%. Larger investments are anticipated to contribute to this recovery, aligning with the government’s target of 3.2% growth for the year in a country that is the world’s third-largest copper producer.

This growth in July marks a sharp increase from June, when Peru experienced a modest economic expansion of 0.21%.

Sector Performance

• Manufacturing increased by 10.91%
• Mining and hydrocarbons sector grew by 3.10%, driven by strong activity in metallic mining, particularly molybdenum concentrate and silver.
• Conversely, production of zinc, copper, and iron saw a decline.
• The agriculture sector declined by 3.93%, impacted by reduced planted areas, weather challenges, and early harvesting leading to lower yields of olives, dry beans, paprika, potatoes, cocoa, and hard yellow corn.

Peru has historically been one of South America’s top economic performers. However, it faced a 0.6% contraction last year due to adverse weather, decreased private investment, and the effects of anti-government protests on the mining sector.