The Peruvian economy grew by 3.3% in the second quarter of 2022.

Gross domestic product (GDP) increased by 3.3% in the second quarter of 2022, driven by an increase in domestic demand (3.2%), reported the National Institute of Statistics and Informatics (ERI).

In its technical report, The Behavior of the Peruvian Economy, the organization detailed that domestic demand was boosted by strong household consumption (4.6%), which was affected by a recovery in employment and income.

private consumption

During the analyzed period, he specified that private final consumption expenditure increased by 4.6% compared to the same period of the previous year.

According to the results of the National Household Survey (ENAHO), in the second quarter of 2022, the total real income of employees increased by 10.6%, mainly due to a 5.5% increase in employment.

At the same time, in the second quarter, government spending on final consumption was 2.8% lower compared to the same period in 2021. This result is explained by a decrease in consumption spending on healthcare (-11.5%) and public administration and defense (-0.4%).

On the contrary, spending on public education increased (5.9%). From January to June 2022, general government final consumption grew by 0.3%, and it increased by 1% year-on-year.

Fixed gross investment

Similarly, INEI reported that gross fixed investment rose 1.2%, supported by progress in construction (3.7%), weakened by a decline in purchases of machinery and equipment (-3%).

In addition, public investment increased by 1.3% as a result of increased investment spending by local and regional governments, but decreased investment by the national government and state-owned companies was reported.

For its part, private investment rose by 1.1% due to an increase in the implementation of projects related to the expansion and reconstruction of apartment buildings and condominiums, commercial premises, office buildings, civil engineering works, etc.

International trade

The agency clarified that exports of goods and services increased by 3%, mainly due to growth in sales abroad of non-traditional goods (6.6%) and services. However, overseas sales of traditional products fell 1.5%. Similarly, imports of goods and services rose by 2.8%; mainly due to increased purchases of goods abroad (2.4%).

In the first six months of 2022, exports of goods and services in real terms increased by 57%, and in the last four quarters, the growth was 9%. On the other hand, imports of goods and services increased by 2.4% in the first half of the year, and increased by 11% year on year.

By economic activity

In the second quarter of 2022, activity in agriculture, livestock, hunting and forestry increased by 4.7% due to the positive results of the sub-sectors of agriculture (5.8%) and livestock (1.9%). During the first semester, activity increased by 4.4%.

Gross value added of the Fisheries and Aquaculture activity decreased by 13%, which was attributed to a decrease in the value of marine fisheries (-12.4%) and fisheries of continental origin (-22.8%). In the first semester, a 20% decrease has been accumulated.

Meanwhile, oil, gas, minerals and related services activities decreased by 1.3% as a result of a decline in the production of minerals and related services (-4.7%), while crude oil, natural gas and related services increased by 19.9. %.

During the analyzed quarter, activity in the manufacturing industry increased by 3.5%, which indicates the restoration of important industries in the country.

Industries in which growth was registered: textile and leather (20.4%); production of metal products (13.2%); base metals (9%); other manufacturing industries (4.1%); production of non-metallic mineral products (2.7%); and paper, printing and reproduction of records (1.4%); mitigated by the fall in the following industries: woodworking and furniture (-12.7%); food (-1.6%) and chemical (-1.5%). In the first semester, it registered a growth of 2.8%.

The gross value added of the Electricity, Gas and Water business increased by 2.6%, driven by increased production of electricity and gas (2.5%) and water (3.1%). From January to June 2022, it increased by 3%.

Construction

INEI reported that construction activity rose by 3.7% due to greater work completion by the private and public sectors. In the first semester, he gained 1.7% growth.

Gross value added of trading activity increased by 2.6% due to positive dynamics in the wholesale and retail trade sub-sector (3.1%), which was offset by a decrease in the vehicle maintenance and repair sub-sector (-3.7%).

Transport, storage, mail and messaging activities increased by 13.5% in the second quarter of this year, driven by the influence of the transport sub-sector (14.6%), a weakened contraction in the storage, mail and messaging sub-sector (-1, eight%).

In the first half of 2022, activity increased by 12.9%.

Hospitality and restaurant activity increased by 38.9%, driven by the positive behavior of the residential sub-sector, which increased by 127.4%, followed by the restaurant sub-sector, which grew by 34.2%. During the first semester, activity increased by 44.3%.

The activity of telecommunications and other information services grew by 0.8% due to the positive behavior of the sub-sectors, telecommunications (0.8%) and other information services (0.7%). In the first semester, he gained 2.5% growth.

In the quarter under study, activity in financial services, insurance and pensions decreased by 7.2% due to the negative behavior shown by financial services (-8.6%); however, insurance services (0.3%) and pension fund managers (10%) increased. Between January and June, it decreased by -6.3%.

Gross value added of business services activities increased by 1.8% compared to the second quarter of 2021. In the first half of the year it grew by 2.5%.

In the second quarter of 2022, public administration and defense activities increased by 3.1%, which is explained by higher services registered in: traffic police operations; prison security; female victims with effective protection measures; and cases resolved in the first and second instances in accordance with the Code of Criminal Procedure. In the first semester, it increased by 3.5%.