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June 20, 2022
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Economic growth: GDP of regions falls due to mining conflicts

Southern Copper warns Cuajone mine could temporarily close due to protests

In the first quarter of the year, the grew 3.8%, but according to the National Institute of Statistics and Informatics (INEI), 12 regions grew above this figure, while five of the rest fell between 0.9% and 10.6%.

Among those that had a better performance are Ica (10.5%), Loreto (9.7%), Tumbes (8.5%), Arequipa (8.2%) and Cajamarca (5.8%). Meanwhile, among those with less dynamism are Moquegua (-10.6%), Huancavelica (-2.4%), Piura (-1.7%), Tacna (0.6%) and Ayacucho (0.9%). What happened to make these perform so poorly?

The economist Víctor Fuentes, from the Peruvian Institute of Economy (IPE), explained that in the case of Moquegua (which in 2021 reached a poverty rate of 10.2%), the negative result was a consequence of the fall in the mining sector. The for example, influenced this result.

Huancavelica, the third poorest region in 2021 (41.2%), was also impacted by the decline in the mining sector, which registered two consecutive months of decline. The mining sector also affected Tacna. In the case of Piura, the IPE representative explained that the drop in the fishing industry has hit the area.

On the other hand, according to INEI data, Ayacucho’s progress was affected by the fall in the construction sector.

A different case is that of Apurímac. In this regard, Fuentes explained that it only grew 2.1%, despite the fact that it could have registered an advance of even more than 10% had it not been for the conflict in Las Bambas.

“We have social conflicts that affect mining development and tourism has not yet recovered,” he noted.

In the same way, he considered that no concern has been observed to serve the poorest population, since measures such as the VAT exemption for some foods do not reach these people.

work to do

Meanwhile, the professor at the Universidad del Pacífico (UP) and former Vice Minister of Economy, Carlos Casas, indicated that productive diversification is necessary for the development of the regions. He also considered that it is essential to bet on infrastructure, since he pointed out that there are areas of the country where it is difficult to reach.

In addition, he assured that it must be taken into account that each region is “a different world”, so the actions taken must be related to each zone.

“The territory we have is diverse, so we have to work to respond to the needs of each of these regions. For example, in Huancavelica the infrastructure is a problem, there is no airport, but in Cajamarca there is an issue of conflict and not taking advantage of opportunities”, he added.

Data

-In 2021, the poorest region was Puno with 42.6% of its population in that condition. Ica was the one with the least poverty, with 6.6% of its inhabitants in such a situation.

-In all of Peru, poverty affected 25.9% of the population last year, down from 30.1% in 2020.

-Lima region grew 3.9% in the first quarter of the year, according to INEI data.

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