Peru’s GDP Growth Slows to 2.6% in Q2

Peru’s economy expanded 2.6% year-on-year in Q2 2026, slowing from 3.6% in Q1. Growth was supported by non-primary sectors, which increased 5.0%, while primary sectors contracted 5.2%. Construction remained the main driver, rising 8.9%, followed by commerce, which grew 7.3%, and electricity and water, up 5.6%. Services increased 4.7%. In contrast, manufacturing fell 5.0%, while mining and fuel declined 0.9%. Agriculture and livestock contracted 2.0%, after growing 1.5% in Q1, while fishing plunged 48.9%, following a 6.4% decline in the previous quarter. On a quarterly basis, GDP growth slowed from 3.6% in Q1 to 2.6% in Q2.

Peru's economy expanded 3.5% year-on-year in Q1 2026, accelerating from 3.2% in Q4. The pickup was mainly supported by stronger domestic demand (6.6% vs 4.8% in Q4). Private consumption rose 3.5% (vs 3.4%), driven by higher employment and increased labor income. Government spending accelerated sharply to 7.4% (vs 0.9%), supported by higher expenditures on personnel, social obligations, goods, and services, particularly in public administration and defense, education, and health. Private investment climbed 13.2% (vs 10.1%), linked to housing, non-residential construction, and civil engineering works. Meanwhile, net trade remained a drag on growth, as exports grew just 0.8% (vs 4.9%), while imports rose 11.4% (vs 10.7%). By sector, growth was driven mainly by construction (13.3%), accommodation and restaurants (5.9%), trade (4.9%), and services provided to businesses (3.7%). On a seasonally adjusted quarterly basis, the economy grew 1.0%.

Peru's economy expanded 3.2% year-on-year in Q4 2025, down from 3.8% in Q3 and marking the eighth consecutive yearly expansion, supported by strength in domestic demand (5.2%). Private consumption rose (3.1% vs 3.6% in Q3), driven by higher employment and increased labor income. Government spending slowed (1.5% 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 (10.8% vs 10.7%), with public and private investment rising by 5.8% and 12.3%, respectively. Meanwhile, net trade contributed modestly to GDP, as exports rose 5.3% and imports increased 11.6%. By sector, output grew mainly in transformation (4.7%), services (3.4%), and extractive industries (0.0%). On a seasonally adjusted basis, the economy grew by 0.6%.