Peru’s economy shows signs of recovery in the first quarter of 2024 after facing challenges in the previous year. The Central Reserve Bank (BCR) reported a 1.4% year-on-year increase in gross domestic product, a positive change after four consecutive quarters of decline.
In its weekly report, the BCR attributed this growth to the recovery of domestic demand, which grew by 2.1% year-on-year, mainly driven by private spending and accelerated public investment.
Private consumption accelerated its growth rate from 0.2% to 1.2% between the fourth quarter of 2023 and the first quarter of 2024, associated with the recovery of real incomes.
Private investment grew by 0.3% year-on-year, reversing the trend of six consecutive quarters of decline. This increase was observed in both the mining and non-mining non-residential sectors, coinciding with improved business confidence, lower corporate interest rates, and better weather conditions.
Public consumption grew by 3.2% year-on-year in the first quarter of 2024, although at a slower pace compared to the previous quarter due to lower disbursements by the national government and regional governments.
Public investment, however, recorded a significant growth rate of 39.9%, supported by higher disbursements at all levels of government, particularly by regional and local authorities.
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