Peru’s economy contracted again
During the month of January, the National Institute of Statistics and Informatics highlighted that there was a 0.98 % contraction
Peru’s national production registered a 0.98 % contraction during the month of January, after the positive variation of 0.51 % recorded in December 2020, according to data published by the National Institute of Statistics and Informatics (INEI).
The fall in the Peruvian economy is explained by lower levels of activity in the transport and storage sectors (-18 %), mining and hydrocarbons (-8.5 %), accommodation and restaurants (-26.6 %), services lent to companies (-8.9 %), commerce (-0.8 %) and electricity, gas and water (-0.1 %).
These data were offset by positive variations in financial and insurance activities (18.6 %), manufacturing (6.9 %), construction (15.2 %), telecommunications (7 %), fishing (74.9 % ), public administration and defense (4.8 %) and the agricultural sector (1.2 %).
Among the sectors with positive contributions, the INEI highlighted the manufacturing sector, mainly due to the processing and preservation of fish, crustaceans and molluscs, which accounted for 6.7 percentage points of the sector’s total growth.
The Andean economy was one of the most affected by the Covid-19 pandemic in 2020, with an estimated drop in Gross Domestic Product (GDP) of 11.4 %, according to data from the International Monetary Fund (IMF).
The multilateral organization projects one of the most vigorous recoveries in Latin America and the Caribbean, with a growth of 8.5 % in 2021 in the event that the Peruvian authorities control the evolution of the pandemic.
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