Peru Economic Activity Slows

Peru’s economy grew 3.21% year-on-year in March 2026, beating forecasts of 2.2% but easing from 3.68% growth in February. The expansion was driven by strong performances in construction (15.65%), trade (4.13%), other services (3.98%), and manufacturing (3.60%). Additional support came from public administration and defense (4.40%), accommodation and restaurants (4.94%), business services (3.49%), transportation (1.77%), telecommunications (1.08%), and utilities (1.33%). In contrast, mining and hydrocarbons contracted 4.56%, while fishing (-12.51%), financial services (-0.79%), and agriculture (-0.48%) also posted declines. Peru’s economy expanded 3.53% in the January-March period and grew 3.40% over the twelve months through March 2026.

Peru’s GDP grew by 3.68% year-on-year in February 2026, up from 3.54% in the previous month and above market expectations of 3.1%. Despite the country's political instability, and with recent elections last Sunday, the expansion was broad-based. Key drivers included strong growth in construction (8.9%) and commerce (6.06%), alongside gains in agriculture (0.71%), manufacturing (2.74%), transportation (4.1%), public administration and defense (3.57%), business services (4.05%), restaurants and hotels (7.22%), telecommunications (0.57%), and electricity, gas, and water (2.99%). In contrast, the key mining and hydrocarbon sector declined by 1.11%. Meanwhile, fishing contracted by 5.2% and financial services edged down by 0.25%. On a monthly basis, the seasonally adjusted production index slipped by 0.01%, reversing a 0.63% increase in the previous period, and activity grew 3.44% in the March 2025 - February 2026 period.

Peru’s GDP expanded by 3.54% year-on-year in January 2026, decelerating from 3.83% in the previous month, with growth recorded across most economic sectors. Growth was underpinned by construction (+15.63%), commerce (+4.33%), and mining and hydrocarbons (+3.08%), alongside gains in accommodation and restaurants (+5.70%), public administration and defense (+4.07%), agriculture (+3.99%), electricity, gas and water (+3.97%), services to businesses (+3.68%), transport (+2.12%), and telecommunications (+0.60%). In contrast, output declined in fishing (-9.56%), manufacturing (-1.45%), and the financial sector (-0.42%). Total goods exports increased by 1.33%, supported by higher shipments of traditional products (+3.51%) and non-traditional fishing products. On a monthly basis, the seasonally adjusted production index grew 0.63%, and activity grew 3.38% in the February 2025–January 2026 period.