Peru’s 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 the government’s INEI statistics agency. This figure 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 a 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.
The growth rate surge, the highest since September 2021, can be attributed to a 29% increase in public spending by the government between January and May, according to the economy ministry. The ministry’s press release on the GDP data also noted that economic activity 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.
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’s efforts to boost economic activity, along with positive performance in key sectors, are contributing to Peru’s economic growth trajectory.