How important are the southern regions for Peru’s economy?

Cusco, Virgin Mary, Puno and other southern regions have been hardest hit economically by the shutdowns caused by more than 20 days of protests, but what percentage of wealth is being generated in the south?

The president of the National Society of Industry (SNI), Jesús Salazar Nishi, claims that the southern regions contribute about 15% of the gross domestic product (GDP) from Peru, whose potential is not fully exploited.

“The entire southern macro-region has a weight in the national GDP of 15%, and at the industrial level it barely reaches 12%. And if we talk about the average income of a worker, then we are talking about 1153 soles on average (…) Puno has a share of GDP of only 2%, but if we look at this at the level of production participation, the GDP of manufacturing is hardly 1%, it is not present in national production,” said a trade union representative.

According to the SNI, regions The largest contribution to GDP is made by Arequipa with a share of 5.5%; and Cusco with a share of 3.4%. both regions thrive in the mining industry.

Data from the Ministry of Energy and Mining shows that, until last year, more than half of mining projects and 52.7% of total mining investment in Peru was concentrated in the southern regions.

The head of the Institute of Mining Engineers of Peru, Carlos Diez Canseco, noted that even in some southern regions there is a complete production of some metals.

“By 2022, we can say that 65% copper production It is produced in southern Peru, 85% of molybdenum production occurs in the south, and 100% iron and 100% tin are also produced in southern Peru. the main regions where this happens are: Arequipa, Apurimac, Puno and Cusco,” he explained.

Another important point in the southern regions is the agricultural sector. Phase Consultores director Juan Carlos Odar claims that the southern zone represents 30% of our country’s agricultural production.

The economist notes that in this sector, Arequipa and Ica stand out with different products that will have a greater impact on the market. Prices faced by consumers.

“There are important products in the consumer basket, the production of which is concentrated in the southern zone. There are two main products: onions, 85% of production in the southern zone, and tomatoes, 77% (…) there. there are others that are also relevant, but not so concentrated: carrots, for example, 49%, potatoes – 46%,” he commented.

Including these sectors, data from the Ministry of Foreign Trade until 2021 show that three out of 10 products Peru’s exports came from the southern regions.

In addition, this area also influences tourism. According to the National Chamber of Tourism (Canatur), 70% of tourists arriving in the country visit the southern regions, but now, taking into account the blockade, the losses between December and January are estimated at more than a billion dollars.