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Puno, Loreto and Madre de Dios would already be in recession, what does that mean?

A recession implies that the country’s economy will have at least two consecutive quarters of falling GDP, meaning its production will fall for six consecutive months. | Fountain: Andean

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Regions Puno, Loreto and Madre de Dios According to the analysis of Phase Consultores, after the social conflicts in the country, a technical recession began.

This means that the production of these regions they fell two quarters in a row, that is, six months in a row.

“In the first quarter of this year, there were several regions that experienced a cold snap, but it is also important how weak the past year was for a recession to start. In the case of Puno and Madre de Dios, the situation is more predictable because they are the regions where the conflict was most concentrated and lasted the longest,” Juan Carlos Odar, director of Phase Consultores, told the Gestión newspaper.

Research shows that in Puno GDP it fell by 0.2% in the first quarter of 2023, when it was affected by blockades caused by conflicts, and earlier in the last three months of 2022, the region had already experienced a fall of 1.1%.

In the case of Madre de Dios, a 1.1% decline in GDP in the first three months of the year and a fall of 2.1% during the last quarter of 2022 are indicated.

Experts warn that in both departments public investment it would fall by more than 50% with lower shipments of cement and agricultural products.

For its part, Loreto fell 1.5% between January and March 2023 and 2.1% between October and December 2022 due to supply issues and lower oil production.

It should be remembered that, according to the National Institute of Statistics and Informatics (INEI), the mining and hydrocarbon sector decreased by 3.7% in the last months of 2022 due to lower oil production in conditions social conflicts in the home community of San Rafael.

In addition, Minem data indicates that Loreto-based batch 95 production was lower in the first two months of 2023.

“What happened with Loreto is due to demand, which has remained weak. There is a greater reliance on food that is not produced locally, so the context of relative scarcity or lesser availability of supply in the first quarter is over for good. y affect consumption (due to higher prices) and then the supply of other non-food products is productive; its useful life is coming to an end, and from time to time there are some protests of local communities,” the economist explained.

It is also noted that in Loreto changing of the climate this will increase the impact on prices and consumption, leading to a decrease in the production of various services.

Other regions hit in the early months by rain and flooding were Piura and La Libertad, which turned negative in the last quarter.

Source: RPP

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