DES MOINES (AP) — Gov. Kim Reynolds said Friday that she’s beginning the long process of reopening Iowa’s economy, even as the state reported a surge of more than 500 in the number of people with the coronavirus.

Reynolds said her first step was to allow elective surgeries and to allow farmers markets to open with some restrictions.

The state meanwhile reported 521 new cases of the coronavirus, taking the total to 4,445, and the number of people killed by the virus increased by 11 to 107.

Iowa is operating under a proclamation that closed much of the economy including shopping malls, theaters and retail businesses where crowds could gather. It limits gatherings to fewer than 10 people. Those statewide orders end Thursday unless renewed by the governor.

Reynolds suggested she may allow some business to resume in parts of the state that haven’t been hit hard.

A significant increase in testing allows state officials to zero in on hot spots to focus on limiting the spread and to see where few cases exist, she said.

“All of that allows us to be very targeted in how we respond. It allows us to start to open up other areas where there are no cases or very few cases,” she said. “We’re probably not going to see a statewide release on some of these areas we’ll be opening up. They will be somewhat targeted and we’ll give you more information on that on Monday,”

Public health data shows 16 Iowa counties have reported no cases.

Reynolds has said recent increases in the number of positive cases are the result of more intense testing. One in 98 Iowans have been tested for the coronavirus, she said. However, the Iowa Department of Public Health said a peak in the number of coronavirus cases could still be weeks away.

“I think that what we can expect is that we are going to see our case counts continue to increase and the peak is only going to occur when our case counts start to come back down,” said Sarah Reisetter, deputy director of IDPH.