Peru's Economy: Growth Amid Challenges and Sectoral Shifts
Peru's economy showed broad-based growth of 4.52% in June, slightly below expectations, as reported by INEI. Growth varied across sectors: mining increased modestly, while fishing surged. The impact of new copper tariffs and protests continue to shape economic forecasts, with 2023 growth expected at 3.1%.
Peru's economy recorded diversified growth in June, up 4.52% from the previous year according to data from the INEI statistics agency. This figure fell short of the 4.70% growth anticipated by analysts in a Reuters poll. Meanwhile, a central bank official hinted at a cooling in July's growth rate.
The mining and energy sector, critical to Peru as the third-largest global copper producer, saw only a modest annual increase of just over 1%. In contrast, the fishing industry experienced substantial growth of over 33%. The hospitality sector faced a decline of 3.27%, and financial services saw a slight contraction.
In a surprise move on August 1, Washington implemented a watered-down tariff on copper imports, imposing a 50% levy on certain semi-finished goods, affecting Peru's economy. The farming sector grew by 8.76%, while construction and commerce reported year-on-year gains of 9.57% and 3.14%, respectively, signaling a recovery from prior setbacks due to protests and political instability.
(With inputs from agencies.)
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