Yesterday, reports based on the new figured released by Peru’s exports oversight body Adex told us of the August numbers and the heaviest year-over-year (YoY) drop in exports from the country. Here’s how the YoY chart looks for the last five years:
Figures from Adex and the Peru Central Bank.
The main reason is mining. The combo of lower prices for copper and gold plus the lower production of gold has, and using the correct technical vocabulary, knocked shit-tonnes off the dollar value of country exports.
And beware blowhards who immediately blame the drop on the reduction in gold produced in Madre de Dios, due to the government crackdown on illegal and informal mining there. As explained in IKN last month that’s a minor factor at most.