Peru’s gross domestic product (GDP) saw a remarkable 5.28% expansion in April compared to the previous year, according to the government’s statistics agency INEI. This growth rate was the highest in 32 months, surpassing analysts’ expectations of 1.4% and the government’s forecast of 4% growth. The increase was driven by several factors, including a nearly 24% rise 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 experienced a decline of 4.34%, mainly due to a drop in metallic mining activity. Despite this decline, the government attributed the overall growth in GDP to a 29% increase in public spending between January and May, as announced by Economy Minister Jose Arista.
Arista also highlighted that economic activity is expected to remain strong in May, particularly in fishing and primary manufacturing sectors. As Peru aims to recover from the recession that began last year, Arista mentioned that he believes that the economy likely continued to grow by 4% during this month, with hopes of returning to pre-pandemic levels soon.