Peru witnessed an economic contraction of 0.4% YoY in Q1 2023, marking the first negative growth since December 2020, primarily driven by a decline in domestic demand and exports. Government expenditure also declined by 1.7%. Notably, gross fixed capital investment plummeted by 8.5%, with private investment falling faster than public investment. Both exports and imports of goods and services contracted by 1.5% and 2.1%, respectively.