Peru’s Economy Surprises with Unexpected 5.28% Growth in April, Fueled by Agriculture and Manufacturing Sectors

In April, Peru’s gross domestic product grew by 5.28%, marking the highest rate of growth in 32 months, according to the government’s INEI statistics agency. This was unexpected, as analyst predictions had predicted a growth rate of just 1.4% and government expectations were for a 4% increase.

The increase in GDP was mainly driven by a nearly 24% growth in agriculture and livestock production, as well as an 11.4% expansion in the manufacturing sector. However, the mining and hydrocarbons sector saw a decrease of 4.34%, ending a period of uninterrupted growth that had lasted over a year. This decline was attributed to a 4.5% contraction in metallic mining activity. Despite this setback, Peru’s overall economic growth has been fueled by a 29% increase in public spending by the government between January and May.

Economy Minister Jose Arista indicated that he believes that Peru’s economy likely grew by 4% in both April and May, as efforts are being made to recover from the recession that began last year. The government expects economic activity to remain strong in May, particularly in the fishing and primary manufacturing sectors. The boost in GDP and increased public spending are positive signs for Peru’s economic recovery as it continues to navigate through the effects of the pandemic on its economy