Mining and Hydrocarbons Sector in Peru: May balance shows signs of recovery

The Mining and Hydrocarbons sector in Peru showed signs of recovery during the month of May, according to the technical report "Cyclical Progress of Economic Activity" from the National Institute of Statistics and Informatics (INEI). With a growth of 1.83%, mining was the main driver of this rebound, with metallic mining activity leading the way. The positive results in mining production were reflected in the increase in the extraction of minerals such as molybdenum, silver, iron, lead, tin, and gold. These factors contributed to the sector's growth, although there were declines in zinc and copper production, with the latter metal showing a negative trend throughout the year. In contrast, the Hydrocarbons sector continued to perform negatively, with a decrease of -1.68% in May, adding to the declines seen in previous months. The lower extraction of crude oil was the main factor behind this performance, despite increases in the production of natural gas liquids and natural gas. On the other hand, domestic cement consumption also showed a slight reduction in May, reflecting slower progress in private construction and self-building projects. This indicator adds to the sectors that did not achieve positive growth during the month under analysis. On a more positive note, fishery production experienced a notable growth of 329.16% in May, driven by increased extraction of marine species. The capture of anchovy for fishmeal and fish oil, as well as other species for human consumption, contributed to this significant increase. Regarding the Electricity sector, there was a 1.80% increase in generation during the month under analysis. Hydroelectric power and renewable energies were the main drivers of this growth, while thermoelectric generation decreased by -15.4%. In summary, May was a month of contrasts for the Peruvian economy, with mining leading the recovery and fishing showing outstanding performance. Despite challenges in sectors such as Hydrocarbons and domestic cement consumption, the overall outlook reflects signs of improvement in the country's economic activity.