GDP slumped to 0.6% in the first quarter of 2020

According to an INE report, the contraction is the product of the economic blow that occurred mainly in sectors such as construction, mining and transportation, sectors decimated by the health emergency

The growth rate of the Gross Domestic Product (GDP) in the first quarter of 2020 reached a growth of 0.6%. This is reflected in a recent report by the National Institute of Statistics (INE) and represents the largest drop in the last decade.

In this scenario, the most affected sectors are construction, mining, and transportation and storage. All three reflect negative numbers, but it is the builders who bear the brunt.

Although in 2019, construction occupied one of the least favored places in terms of growth (it reached a positive record of 1.91%), in the first quarter of 2020 it reached a negative position that means a hit of -19, 71%.

“The fall in the construction sector is based on a lower execution of public investment, which was deepened by the lower disbursements of credits destined for this sector in the financial system,” reads the INE report.

Regarding the negative variation of the mining sector, there was a lower extraction of the complex lead -15%, silver -11% and zinc -5%; Only the case of tin lessens the fall with a 4.6% increase in production, for this sector, which as a whole presents a negative rate of 12%.

While the transport and storage sector registered a negative figure of -1.17%, mainly affected by the stoppage in an activity that occurred since March due to the quarantine, where the flow of goods was stopped, as well as that of passengers, an aspect that was also exhibited in other countries.

On the other hand, the sectors that underpinned the economy in the first quarter of this year are communications, public administration, and energy resources. They displace the productive sector from the first place, although this has also been a support for the national economy.

The activity of communication services (including telecommunications) registered a positive variation of 4.9%; The figure was explained by an increase in Internet connectivity of 11.2% and the number of connections that grew by 3.5% in the first quarter, while mobile telephony showed a slight increase of 1.6%, according to the INE.

The growth of production in the agricultural sector is based on the higher yields per hectare sown in crops such as wheat, soybeans, corn, and sorghum. The summer 2020 campaign is slightly delayed due to the rains registered in the department of Santa Cruz and the preparations for winter planting.

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