Peru’s Economy Defies Expectations with 5.28% GDP Growth in April

In April, Peru’s gross domestic product expanded by an impressive 5.28%, marking the highest rate of growth in over three years, according to the government’s INEI statistics agency. This expansion exceeded both analyst predictions of 1.4% and government expectations of a 4% increase. The primary drivers of this growth were a nearly 24% increase in agriculture and livestock production, as well as an 11.4% expansion in the manufacturing sector.

However, not all sectors experienced positive growth. The mining and hydrocarbons sector saw a decline of 4.34% in April, ending a year-long period of uninterrupted growth. This contraction was attributed to a 4.5% decrease in metallic mining activity. Despite this setback, Peru’s overall economic growth has been fueled by a remarkable 29% increase in public spending by the government between January and May.

Economy Minister Jose Arista indicated 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.