Against all odds: the Peruvian economy grows in March

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Against all odds: the Peruvian economy grows in March

Peru economy for 2017

Peru economy for 2017

Despite the difficulties presented by the phenomenon called “El Niño” (the Kid) that caused much more damage in last weeks of March, Peru’s GDP grew 0.71% in the third month of the year, compared to March ‘16.

The Instituto Nacional de Estadística e Informática (INEI) revealed this growth during this week’s session. They also reported that this percentage represents over 90 months of growth in GDP real terms. Thus, Peru’s economy had a 2.08% increase in Q1 2017 as compared to Q1 2016, and a 3.34% in yearly terms.

According to INEI, this profit result attends to sectors and industries such as fishing, telecommunications, manufacturing, transport and messaging. On the other hand, the mining and farming industries, trading and construction had and important set back during March.

INEI’s Director, Aníbal Sánchez Aguilar, declared to the media that the setback took place due to El Niño. It affected the supply of merchants, mining units’ operability, transport infrastructure, restaurant activities, as well as water, power and communications facilities. A series of relay antennae were affected in several areas of the country.

Fishing industry saved the month

During the harsh month of March, the fishing of the Peruvian anchoveta and other species for frozen products allowed this sector to improve the production in 37.29% compared last year’s third month.

This increase was boosted by the greater marine capture for direct human consumption, with 25.42% of increase, and by the species destined to the frozen subsector, with a 112.63% increase. The canned subsector suffered a decrease of 6.9%, and the same fate ran for fresh intake with -13.8%, and cured fish with -24.6%.

Peruvian fishing industry

Peruvian fishing industry, in a way, saved the country’s economy

The key for the economy of Peru was the fishing of anchoveta for indirect human consumption (industrial fishing). The key is also not taking into account the peaks of demand and the seasonal consumption, hence the behavior and market strategies’ result will be evident to make adjustments considering this index, expressed a professor of  the Universidad Católica of Perú (Catholic University of Peru).

He also declared that currency and foreign exchanges, as well as financial and stock exchanges must observe GDP disregarding the seasons, i.e. observing Peru’s economy in time fluctuations, comparing its growth in real time or the loss of drive it could have.

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