KEY POINTS
- Peru’s GDP grew 3.93 percent in November, marking eight months of expansion.
- Farming and fishing sectors recorded double-digit growth rates.
- Declines in mining and construction highlight ongoing economic challenges.
Peru’s economy continued its upward trajectory in November 2024, with the nation’s gross domestic product (GDP) expanding by 3.93 percent compared to the same period in 2023, according to the country’s National Institute of Statistics and Informatics (INEI).
This marks the eighth consecutive month of economic growth for the copper-rich nation, surpassing analysts’ expectations of 3.1 percent growth and October’s rate of 3.38 percent.
The latest expansion in November has indicated Peru’s recovery from the previous recession this had slowed down its economic growth.
The farming, and fishing sectors emerged as the most promising industries by recording high growth while the mining and construction sectors regressed.
Farming and fishing lead economic growth
Peru’s farming sector grew by an impressive 12.4 percent in November, while fishing surged by 17.6 percent.
Both sectors are critical to the country’s economy, with fishmeal production, a byproduct of anchovy fishing, playing a major role in global fertilizer markets.
On the other hand Manufacturing grew by 6.7 percent, a factor which also enhanced the economic expectation.
Nevertheless, some issues still exist. The Mining and hydrocarbon sector, among the most important for exports in Peru, diminished its activity by 2.2 percent.
According to Reuters, lower production levels of metals like copper, zinc, and gold contributed to this decline, even as hydrocarbon output increased.
In the same vein, the construction sector incurred a cut of 2.4 percent for the same period.
Optimism for sustained economic recovery
The November GDP growth is thus the largest monthly increase since July 2024 and another evidence that Peru’s economic policies are positive.
The central bank has estimated its target GDP growth rate for 2024 to be 3.2 percent against the back drop of economic setback experienced in the year 2023 due to unfavourable weather, decline in private investment and impacts of anti government protests.
For the year 2025, the central bank has forecast GDP growth of 3.0 percent implying optimism notwithstanding risks in global markets and in segments such as mining in home country.
Challenges in mining sector affect exports
Although the economy reveals positive movement in a broad perspective, the lowering of mining volume has been an issue seen by analysts.
Currently, Peru is the second largest exporter of copper and highly depends on this sector for foreign exchange earnings and government receipts.
Less demand for the metals, and changes in global demands unequivocally speak of the need to make further investments and blow risks in the future.
The government continues to work towards solving these challenges with key areas targeting agriculture, manufacturing productivity, and the continued challenges of the mining business.
