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Peru's economy shrank in January after nearly two years of growth

Published 03/15/2023, 01:58 PM
Updated 03/15/2023, 02:01 PM
© Reuters. FILE PHOTO: A coin box is pictured next to fruits displayed for sale at a stand at Surco market in Lima, Peru August 31, 2018.  REUTERS/Mariana Bazo
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(Reuters) - Peru's gross domestic product contracted 1.12% in January compared with the same month a year before, official data showed on Wednesday, marking the first contraction in 22 months as anti-government protests played out across the country.

The economic activity of various sectors in the world's no. 2 copper producer shrank in January, including mining, construction, retail, transportation and telecommunications.

Manufacturing, restaurants and the power sector, however, experienced growth during the first month of the year.

© Reuters. FILE PHOTO: A coin box is pictured next to fruits displayed for sale at a stand at Surco market in Lima, Peru August 31, 2018.  REUTERS/Mariana Bazo

Economic activity during January was hit by "social conflicts, which paralyzed labor, blocked roads, (and) saw markets shut" in parts of the country, the national statistics agency said in a statement.

Exports also dropped, the statement added, as well as investment in construction.

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