Peru’s gross domestic product expanded by 5.28% in April compared to the previous year, according to the government’s INEI statistics agency. This growth rate is the highest the country has seen in 32 months, reversing the contraction experienced in the prior month. The growth surpassed analysts’ expectations of 1.4% and the government’s forecast of a 4% increase. The expansion in April was largely driven by a nearly 24% increase in agriculture and livestock production, as well as an 11.4% growth in the manufacturing sector.
However, the mining and hydrocarbons sector saw a decrease of 4.34% in April, marking a shift from over a year of continuous growth. This decline was primarily due to a 4.5% contraction in metallic mining activity. Despite this, the overall GDP growth rate for April was significant, marking the highest level since September 2021.
The Peruvian government attributed the increase in economic activity to a 29% rise in public spending between January and May. In a press release, the economy ministry stated that economic activity is expected to remain dynamic in May, driven by fishing and primary manufacturing. The ministry remains optimistic about the ongoing growth trajectory of the Peruvian economy.
Economy Minister Jose Arista announced that Peru’s economy grew by 4% in April, with expectations that this growth continued into May. The country is working towards recovering from a recession that started last year. This recent growth in GDP reflects positive momentum for Peru’s economy as it strives to rebound and rebuild.