Peru’s Economy Surprises with 5.28% Growth in April, Fueled by Agricultural Sector and Massive Public Spending

Peru’s economy has experienced a remarkable growth of 5.28% in April compared to the previous year, marking the highest rate of expansion in 32 months, according to data from the government’s INEI statistics agency. This growth exceeded both analyst predictions of 1.4% and government expectations of a 4% increase, indicating that the Peruvian economy is on track for a strong recovery from last year’s recession.

The agricultural and livestock production sector was the main driver of this growth, with an astonishing 24% expansion. Additionally, the manufacturing sector also experienced an impressive 11.4% expansion. Despite this, the mining and hydrocarbons sector saw a decrease of 4.34% in April, ending a period of uninterrupted growth that had lasted over a year. This decline was attributed to a contraction in metallic mining activity of 4.5%.

Despite this setback, Peru’s overall economic growth has been fueled by a massive increase in public spending by the government between January and May – an astounding 29%. Economy Minister Jose Arista stated that Peru’s economy likely grew by 4% in both April and May as efforts are being made to recover from last year’s recession. The government expects economic activity to remain strong in May, particularly in the fishing and primary manufacturing sectors. The boost in GDP and increased public spending are positive signs for Peru’s economic recovery, indicating that the country is moving towards sustainable growth once again