Virus-hit Peru GDP plummets 40% in April 2020

LIMA, Peru – Peru, one of the countries worst hit by the coronavirus pandemic, has seen gross domestic product (GDP) plummet by more than 40% year-on-year in April, the government said on Monday, June 15.

Mining production fell sharply in one of the world’s largest producers of copper, gold, and silver, contracting by more than 42.29% in April.

Overall economic activity fell 40.49%, the national statistics institute said.

The sharp fall in April “reflects the underperformance of most productive sectors, with an impact on trade, production, construction, mining, hydrocarbons, transportation, hotels, and business services,” it said.

The Peruvian economy, one of the strongest in Latin America over the last decade, had already contracted more than 16% in March.

Before March, the Andean country registered 127 months of consecutive growth.

Despite a lockdown in place since March 16, Peru is the second worst-hit country in Latin America after Brazil, with nearly 230,000 cases and almost 7,000 deaths from COVID-19.

The centrist government of President Martin Vizcarra rolled out a series of economic measures including an aid package to more than 6.5 million homes.

However, Vizcarra was later forced to extend the current quarantine until June 30, making Peru’s one of the world’s longest lockdowns. – Rappler.com