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Peru: Apurimac, Arequipa, Madre de Dios led growth in 2016

Las Bambas

Las Bambas

12:24 | Lima, Jul. 21.

Apurimac (153.6%), Arequipa (26.3%) and Madre de Dios (14.6%) regions led Peru's GDP growth in 2016, the National Institute of Statistics and Informatics (INEI) reported.

Said regions were followed by Puno (6.3%), Huanuco (5.8%), Cusco (5.1%) and Ancash (4.7%), INEI head Anibal Sanchez informed. 

Thus, growth of seven Peruvian regions topped the Inca country's 3.9% GDP last year. 

Apurimac 

Southern-central Apurimac region saw a 153.6% year-over-year rise in 2016. Said result was fueled by the start of operations of Las Bambas mine, which boosted copper output by a staggering 4,734% and makes up 96.1% of mining activity. 

Apurimac growth drivers also included a construction increase due to greater road infrastructure public works (+56.1%): the rehabilitation of Andahuaylas-Pampachiri-Negromayo Highway and the construction of Llachua-Winchos Jata Highway. 

Electricity, water and sanitation infrastructure (+47.0%) also expanded following the upgrading of drinking water services in Abancay district. 

Arequipa 

Growth of southern Arequipa region (26.3%) was also spurred by copper output, up by 122.3% thanks to Cerro Verde mining company, which accounts for 74.7% of mining production. 

Molybdenum (195.3%), gold (21.2%) and silver (5.9%) production also expanded in the analyzed period. 

Arequipa GDP growth was also driven by higher electricity, gas and water activity (+17.0%) due to the start of operations of Puerto Bravo Thermal Power Plant in Islay province. 

Madre de Dios  

On the other hand, rainforest Madre de Dios region grew 14.6% in 2016 driven by gold production (+37.7%), which contributes 94.2% of its mining activity.
 
Likewise, the construction sector expanded 15.4% thanks to increasing electricity, water and sanitation infrastructure (33.8%), as well as greater road infrastructure (35.6%).

Lima 

In 2016, Lima region's GDP rose by 2.3%.

Said result was mainly explained by services like telecommunications and other information services (+7.1%), public administration and defense (3.7%), transport (3.5%), and other services (4.0%).

Lima's mining and hydrocarbon activity grew as well, driven by Buenaventura mine's gold extraction and Casapalca's silver output. 

(END) RGP/RGP/DHT/MVB


Published: 7/21/2017