Peru’s Gross Domestic Product (GDP) grew by 2.7 percent in 2022, driven by domestic demand that advanced by 2.3 percent, the National Institute of Statistics and Informatics (INEI) reported yesterday, Thursday.
The expansion of domestic demand was mainly influenced by the contribution of household consumption by 3.6 percent and gross fixed capital formation by 0.8 percent, INEI explained in its technical report “Comportamiento de la Economía Peruana” (Behavior of the Peruvian Economy).
Exports increased by 5.9 percent, and imports of goods and services expanded by 4.2 percent but were not favored by government consumption, which decreased by 1.1 percent.
The institute indicated that during the fourth quarter of last year, GDP increased by 1.7 percent, a development in the context of slower growth in the world economy and the South American country’s main trading partners.
Domestic demand grew 2.1 percent in that period due to household consumption, which increased 2.3 percent with respect to the same period in 2021.
According to the “Permanent Employment Survey of Metropolitan Lima” results, the average monthly labor income increased by 11.4 percent in that quarter, and employment increased by 3.6 percent.
Meanwhile, gross fixed capital formation expanded 2.6 percent due to higher public investment, which increased 23.4 percent, with general government investment standing out, although private investment contracted 1.8 percent.
Citing a report from the Ministry of Economy and Finance, INEI detailed that mining investment at current prices decreased 7.9 percent due to lower investment in infrastructure (25.8 percent), plant and beneficiation (11.3 percent), mining equipment (3.3 percent) and others (39.3 percent).
In the last quarter of 2022, exports of goods and services at constant prices increased by 0.1 percent, while imports of goods and services increased by 1.9 percent compared to the same period of the previous year.
During the fourth quarter, the economic activities that generated the most significant contribution to GDP were lodging and restaurants (7.9 percent); transportation, storage, mail, and courier services (6.2 percent); electricity, gas, and water (5.2 percent); and construction (4.7 percent).
The gross value added of trade increased by 2.5 percent, followed by agriculture, livestock, hunting, and forestry (2.4 percent) and public administration and defense (2.2 percent).
On the other hand, the sectors that recorded decreases were fishing and aquaculture (16.2 percent), telecommunications and other information services (6.8 percent), financial services, insurance, and pensions (5 percent), and manufacturing (2.2 percent).