ÁNCASH, OCTOBER 28 2021 IPE: With mining support, Ancash is the region with the fastest recovery from the effects of the pandemic

  • Mining is the region's most important economic activity, accounting for 47% of its total GDP.


"Ancash is the region with the fastest recovery from the effects of the pandemic. Partially, this is due to the mining industry". This was stated by the general manager of the Peruvian Institute of Economics (IPE), Diego Macera, during his presentation at the "Territorial Development and Mining in Ancash" event, organized by the Peruvian Institute of Mining Engineers (IIMP) and the Executive Committee of PERUMIN 35.

According to the "Challenges for competitiveness in Ancash'' study, presented by IPE, mining is the most important economic activity in the region, accounting for 47% of its total GDP. Furthermore, it stated that by the second quarter of 2021, the GDP growth of the region had reached 9% more than during the same period in 2019 (prior to the start of the pandemic). Likewise, employment in the private sector also evidenced a recovery, as a 19% increase was reported in June 2021, as compared to the same month in 2020, with more than 70,000 job positions.

Similarly, IPE’s report highlights that mining has contributed to the reduction of poverty by more than 40%, going from 62% to 18%, from 2004 to 2019.

Lack of public investment

Although Ancash has been recovering favorably and its budget for public investment has increased, the execution level in the region (40%) remains below the national average (62%). Therefore, there are currently 132 stalled projects, while those prioritized by the municipalities of the region present a high level of fragmentation; that is, a large number of projects with a low average investment each.

The analysis presented by IPE points out that the low execution in public investment has been generating gaps in education, health and infrastructure, which reduce the region's competitiveness. "Despite the fact that 90% of the population of Ancash has access to drinking water, this service only operates for 15 hours a day on average. Furthermore, only 31% of the departmental or neighboring roads in the region are paved or surfaced," according to IPE. In addition, it is reported that Ancash is among the regions with the highest number of people over 15 years of age who cannot read or write.

"The budget for public investment in Ancash has grown considerably. However, whenever there are greater transfers, it is much more difficult to manage spending. It is important to know that there are resources and there is potential; nonetheless, companies, the state, and the population need to work together to be able to execute and distribute them better", says Macera.

It is worth noting that Ancash is the mining region that currently receives the largest amount of fiscal redistribution (canon minero) and royalty transfers. So far in 2021, it has received transfers for more than S/.1.223 billion, according to figures from the Ministry of Energy and Mines.

Newsletter PERUMIN 35

Enter your email

Thanks for registering. You will receive our newsletters shortly.

Has ingresado desde otro dispositivo

Cierra la otra sesiòn para poder continuar