After a challenging start of the year, characterized by social conflicts and heavy rains, the Peruvian economy has begun to show signs of recovery, albeit at a slow pace. In fact, it is estimated that the GDP grew by 1% during April and May, following a contraction of 0.4% in the first quarter of 2023. This economic recovery has revealed significant variations among sectors, markets and population segments. While investment-related sectors continue to experience double digit declines in the second quarter, markets linked to consumption have rebounded and returned to moderate growth (around 2%), after stagnation in the first quarter. Additionally, the primary sectors have exhibited robust growth (approximately 7%), driven by an increase in mining exports.
Four positive developments have emerged in this context.
Senior Analyst
During the 2Q2024, economic growth was driven by the rebound of primary sectors, such as traditional agriculture and fishing, and by higher public spending, supported by an estimated increase of 11% in public wages and 16% in public investment, adjusting for inflation.
During the month of August, attention was focused on the dynamics within Congress. In view of the election of the Board of Directors and the recomposition of the ordinary commissions, numerous movements were recorded in the benches.
Although the implicit alliance between the Executive and the Legislative remains in force, in recent months we have seen a progressive weakening of the Executive.
