LIMA, June 4 (NNN-ANDINA) — Public and private investments rebounded in the first quarter of 2024 by registering increase of 39.9% and 0.3%, respectively, Peru’s Central Reserve Bank (BCR) has reported.
During the first quarter of 2024, public investment registered a 39.9% growth compared to the first quarter of 2023, an increase underpinned by higher disbursements at every government level, although those from regional and local bodies stood out, the BCR indicated in its Weekly Report.
Private investment rose 0.3% year-on-year during the first quarter of 2024, after six consecutive quarters of decline.
“An increase in investment was observed in the mining sector, as well as in the non-mining and non-residential ones. The increase coincides with business confidence recovery in a context of decreasing corporate interest rates and better weather conditions,” the BCR pointed out.
Thus, Gross Domestic Product (GDP) grew 1.4% year-on-year in the first quarter of 2024, a positive evolution after four consecutive quarters of decline.
“This change in direction was supported by domestic demand recovery. The components of private spending recorded better results than in the previous quarter, in a context of lack of social conflicts, unlike those observed in the first quarter of 2023, and a lower incidence of inflation on real household income,” it noted.
The Central Reserve Bank indicated that domestic demand grew 2.1% year-on-year during the first quarter of 2024, after consecutive falls in four quarters.
“The positive result is mainly explained by private spending recovery and public investment acceleration. This trend was partially offset by the moderation in public consumption growth rate,” the BCR explained.
“Private consumption accelerated its growth rate from 0.2 to 1.2% between the fourth quarter of 2023 and the first quarter of 2024. This fact is associated with real income recovery,” it added.
Moreover, the BCR said public consumption grew 3.2% year-on-year during the first quarter of 2024 and its slowdown, compared to the previous quarter, is mainly explained by the National Government’s lower disbursements. Lower spending by regional governments also had an impact, it concluded. — NNN-ANDINA
