Peru Economy Expands for 7th Straight Quarter

Peru's economy expanded 3.4% year-on-year in Q3 2025, up from a downwardly revised 2.6% in Q2 and marking the seventh consecutive yearly expansion, supported by strength in domestic demand (6.6%). Private consumption rose (3.2% vs 2.9% in Q2), driven by higher employment and increased labor income. Government spending also accelerated (4.7% vs 3.7%), fueled by higher expenditures on public administration and defense, as well as on public education and public health. Gross fixed investment increased faster (10.1% vs 7.8%), with public and private investment rising by 3.5% and 12.2%, respectively. Meanwhile, net trade contributed modestly to GDP, as exports rose 1.2% and imports increased 11.6%. By sector, output grew mainly in extractive industries (4.7%), services (3.1%), and manufacturing/transformation (2.3%). On a seasonally adjusted basis, the economy grew by 1.2%.

Peru's economy expanded 2.8% year-on-year in Q2 2025, slowing slightly from 3.9% growth in the previous period and marking the sixth consecutive yearly expansion, supported by strength in domestic demand (6.0%). Private consumption eased (2.9% vs 3.8% in Q1), driven by higher employment and increased labor income. Government spending also eased (3.7% vs 4.7%), fueled by higher expenditures on public administration and defense, as well as on public education and public health. Gross fixed investment increased faster (7.8% vs 4.0%), with public and private investment rising by 3.2% and 9.8%, respectively. Meanwhile, net trade contributed modestly to GDP, as exports rose 2.7% and imports increased 13.9%. By sector, output grew mainly in manufacturing/transformation (3.0%), services (2.8%), and extractive industries (1.3%). On a seasonally adjusted basis, the economy grew by 0.5%.

Peru's economy expanded 3.9% year-on-year in Q1 2025, slowing slightly from 4.9% growth in the previous period and marking the fifth consecutive yearly expansion, supported by strength in domestic demand (4.4%). Private consumption rose eased (3.8% vs 4.2% in Q4), driven by higher employment and increased labor income. Government spending rebounded (4.7% vs -0.7%), fueled by higher expenditures on public administration and defense, as well as on public education and public health. Gross fixed investment increased faster (9.7% vs 4.0%), with public and private investment rising by 10.7% and 9.5%, respectively. Meanwhile, net trade contributed positively to GDP, as exports surged 14.2% and imports soared 15.5%. By sector, output grew mainly in agriculture (4.0%), oil, gas, and mineral extraction (2.4%), manufacturing (4.0%), construction (5.3%), commerce (3.4%), and transportation, warehousing, mail, and courier services (7.4%). On a seasonally adjusted basis, the economy grew by 0.6%.