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Peru economy grows in January below expectations

Published 16/03/2024, 02:23 am
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(Reuters) -Peru's economy grew in January, the government's INEI statistics agency said on Friday, fueling hopes the Andean nation can emerge from a stubborn recession this year.

Gross domestic product (GDP) expanded 1.37% in January compared with the same month last year, when the economy was impacted by protests and social upheaval.

The positive figure, however, came in under the 1.70% growth forecast predicted by analysts polled by Reuters.

January's expansion was led by the construction sector, which grew 13.16%, as well as the critical mining and hydrocarbons sector, which was up 3.96%.

The mining growth was driven by a 4.98% expansion in metals mining. Copper production from the world's No. 2 producer, however, dropped slightly by 0.33%, INEI said.

The country's important fishing sector contracted 26.75%, hurt by a drop in anchovy volumes. Anchovy is critical in making fertilizer fishmeal, of which Peru is a top producer.

Earlier this month, the Peruvian central bank's top economist forecast the economy returning to positive quarterly growth in the first three months of the year after four quarters of economic decline, as inflation nears the bank's target range and risks from the El Nino weather phenomenon moderate.

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