National production increased 5.04% in May 2024

Communiqué from the National Institute of Statistics and Informatics (INEI)

This is an automated translation of the press release issued in Spanish

In May 2024, national production grew by 5.04% compared to the same month of the previous year, as announced by the National Institute of Statistics and Informatics (INEI) in the technical report National Production . This result was supported by the positive performance of almost all sectors, with the exception of Financial and Insurance.

In May, the contribution of the manufacturing sector stood out; followed by fishing; other services; transportation, storage and courier; construction and commerce, which together explained 81% of the global result for the month of analysis; Mining and hydrocarbons are next in importance; agricultural; public administration and defense; services provided to companies; electricity, gas and water; accommodation and restaurants; and telecommunications.

The INEI stated that, during the first five months of 2024, the country's productive activity grew 2.94% and in the last twelve months (June 2023-May 2024) it presented a variation of 0.83%.

Agricultural Sector grew 2.64%

The Agricultural sector increased by 2.64% explained by the higher volumes obtained from products from the agricultural subsector (3.22%), among which the following stood out: grain barley (142.3%), dry grain beans (119.0%). , starchy corn (106.6%), goose (80.5%), alfalfa (18.2%), potatoes (17.8%) and paddy rice (7.0%), as a result of the greater planted area of the main crops.

Likewise, the livestock subsector grew by 1.20% due to higher production of pork (5.6%), poultry (1.6%), beef (1.4%) and alpaca (0.7%).

Production of the Fishing sector increased by 329.16%

The Fishing sector grew 329.16% due to the greater extraction of species of maritime origin (451.16%), for indirect human consumption (anchovy resource for fishmeal and fish oil), extracting 1,454,863 tons in the month of analysis, that, compared to the 7,620 tons obtained in May 2023, there was an increase of 1,447,243 tons; as part of the continuation of the 1st. Fishing Season in the North-Central Zone of the country's coastline.

To a lesser extent, the capture for direct human consumption of species destined for canning (170.7%) and fresh consumption (17.2%) increased (10.84%). However, it was reduced for frozen (-3.7%) and curing preparation (-2.4%).

On the other hand, fishing of continental origin contracted 50.10% due to the lower extraction of species for consumption in a fresh state, for frozen and cured preparation.

Mining and Hydrocarbons sector grew by 1.83%

The INEI reported that the Mining and Hydrocarbons sector increased by 1.83% as a result of the good performance of metallic mining activity (2.39%), given the greater production of molybdenum (22.7%), silver (21 .9%), iron (20.7%), lead (19.8%), tin (7.2%) and gold (4.5%). This performance was partially offset by lower extraction of zinc (-11.3%) and copper (-1.1%).

On the other hand, the hydrocarbon subsector decreased by 1.68% associated with the lower volume of crude oil exploitation (-9.4%). However, the production of natural gas liquids (1.5%) and natural gas (0.4%) grew.

Manufacturing Sector increased by 18.59%

In May 2024, the Manufacturing sector grew by 18.59% according to figures from the Ministry of Production (PRODUCE). This result was mainly based on the greater activity of the primary manufacturing (76.54%) and non-primary manufacturing (1.12%) subsectors.

The positive behavior of the primary manufacturing subsector was influenced by the dynamism of the fish, crustaceans and mollusks processing and conservation branch (651.1%) due to the greater availability of the anchovy resource; the manufacture of petroleum refining products (32.6%); sugar production (19.5%) and meat production and preservation (2.6%). However, the manufacture of primary products of precious metals and other non-ferrous metals decreased (-5.1%).

The growth of the non-primary manufacturing subsector was supported by the greater production of the consumer goods industry (3.53%) and capital goods (49.81%). On the contrary, the intermediate goods industry contracted (-2.11%).

Electricity, Gas and Water Sectorrecorded progress of 1.72%

The Electricity, Gas and Water sector grew 1.72% due to the favorable results of the electricity (1.93%) and water (1.06%) subsectors. While gas distribution decreased (-3.08%). The electricity subsector increased due to the greater generation of hydroelectric energy (10.3%) and non-conventional renewable energy (60.6%); However, that of thermoelectric origin decreased (-14.7%).

The positive result of the water subsector was supported by the higher generation of the companies Epsel (4.9%), EPS Grau (4.0%), Seda Chimbote (0.2%), Sedapar (0.1%) and Sedapal (0.06%), among the main ones. The decrease in gas distribution was determined by lower demand from Electric Generators (-8.7%); which could not be offset by the increase in demand from Companies (17.4%) and from Vehicular Natural Gas dispensing establishments (8.2%).

Production of the Construction sector increased by 5.54%

The Construction sector increased by 5.54% driven by the greater physical progress of public works (33.11%); while internal cement consumption decreased (-1.69%). The negative result of domestic consumption was associated with the lower dynamism of private works in civil engineering work for the mining, electrical, and hydrocarbon sectors, in industrial and storage plants, remodeling of business buildings, and works on multifamily buildings.

The physical progress of public works was observed in the three areas of government; among which are road infrastructure works; construction of non-residential buildings; risk prevention works and basic services.

Commerce Sector grew 2.06%

During May 2024, the Commerce sector increased by 2.06% due to the good performance of wholesale sales (2.43%), due to the renewal of computers, peripheral equipment and computer programs; electronic security and cybersecurity equipment; natural and agrochemical products; fuel aimed mainly at the mining, fishing and air transport sectors; as well as machinery and equipment driven by the dynamism of the economic sectors.

The advance in retail sales (2.50%) was explained by commercial strategies in supermarkets and department stores on the occasion of Mother's Day. Additionally, greater demand for fuel was recorded at taps and self-service stores. Meanwhile, automotive trade decreased (-2.45%), as a result of the lower demand for linear motor vehicles and motorcycles, their maintenance, as well as the lower sale of their parts, pieces and accessories and lower demand for tires.

Transportation, Storage and Courier Sector grew by 7.03%

The INEI reported that the Transportation, Storage and Courier sector advanced 7.03% due to the positive behavior of the transportation (8.96%) and storage and courier subsectors (0.75%).

The transportation subsector grew due to the increase in land transportation and pipelines (5.96%), due to greater passenger (4.3%) and cargo (8.1%) road traffic; and rail transport (26.63%), given the increase in passenger flow. On the other hand, pipeline transportation decreased (-0.74%) explained by the lower extraction of crude oil.

Air transportation also increased by 16.48% in response to increased passenger and cargo traffic. A similar trend was seen in water transport, which grew by 22.17%, as a result of the greater flow of cargo by sea and passengers by river.

The positive result of the storage and courier subsector was based on greater postal and courier activity (3.97%), as well as storage and transportation support activities (0.37%).

The Accommodation and Restaurants sector increased by 1.14%

The Accommodation and Restaurants sector grew 1.14% due to the dynamism of the restaurants (1.10%) and accommodation (5.70%) subsectors. The behavior of the restaurant subsector was determined by food services for transportation companies and   concessionaires (5.38%), catering service (80.02%) and beverage service (3.06%). However, restaurant businesses were affected (-0.82%) in the categories of cevicherias, meats and grills, chifas, Japanese food, chicken shops and fast foods.

Telecommunications and Other Information Services Sector increased by 0.08%

During May 2024, the Telecommunications and Other Information Services sector grew by 0.08%, due to the positive performance of the other information services subsector (2.27%); However, the telecommunications subsector decreased (-0.12%).

The behavior of the Other Information Services subsector was influenced by the increase in computer programming activities (7.2%), as well as the production and exhibition activities of films and television programs (3.0%). On the contrary, television and radio programming activities decreased (-2.8%) and editing (-0.6%).

The contractionary behavior of the telecommunications subsector was observed in telephone services (-1.2%) and data transmission services (-12.8%). On the other hand, Internet and subscription television services increased (3.4%).

Contraction of 1.06% in the Financial and Insurance sector

The Financial and Insurance sector decreased by 1.06%, reflected in the contractionary behavior of one of its main components, commercial banking loans, which registered a reduction of 2.26%, a result that was attenuated by the increase in deposits at 3.16%.

By segment, loans directed to corporations, large, medium, small and microenterprises (-4.1%) and consumer loans (-1.4%) decreased. However, mortgage loans increased by 3.4%. By economic sectors, credits directed to commerce were reduced; manufacturing industry; agriculture, livestock, hunting and forestry; financial intermediation; transportation, storage and communications; construction and real estate, business and rental activities.

On the other hand, the positive result of commercial banking deposits was observed in demand deposits (8.4%) and time deposits (3.6%). Meanwhile, deposits for compensation of service time and savings decreased by 3.7% and 1.6%, respectively.

Services Provided to Companies Sector increased by 3.13%

The Business Services sector grew by 3.13%, due to the positive results of travel agencies and tour operators (42.9%), advertising and market research (3.5%), professional, scientific and technical activities (1.9%) and administrative and business support services activities (1.1%).

Government Services increased by 3.65%

The INEI announced that government services grew by 3.65% due to the greater activity carried out by Public Administration (3.6%), Defense (4.1%) and Other government services (3.9%). .