Peru Economic Activity Slows in May

Peru's economy expanded 1.8% year-on-year in May 2026, marking its slowest growth since November 2025, down sharply from 3.73% in April and well below market expectations of 3.2%. Fishing recorded the steepest contraction, plunging 73.1% after a 1.7% increase in the previous month, as warmer surface waters pushed fish into deeper areas due to the El Niño phenomenon. Manufacturing also declined 10.7%, reversing a 2.2% gain in April. Growth further slowed in commerce (6.9% vs. 7.3%), construction (4.7% vs. 12.9%) and public administration (3.7% vs. 4.1%). Offsetting part of the weakness, mining and hydrocarbons returned to growth (2.6% vs. -3.24%), while agriculture edged up 0.1% after a 1.6% decline. In the first five months of 2026, the economy expanded 3.2% from a year earlier, while growth over the 12 months through May stood at 3.54%.

Peru's economy expanded 3.73% year-on-year in April 2026, marking the highest level in five months, accelerating from 3.21% in the previous month and well above market expectations of 3.55% growth. Economic activity was supported by broad-based gains across several sectors, particularly manufacturing (2.17%), commerce (7.31%), construction (12.88%), transport (1.44%), public administration and defense (4.08%), services (3.27%), financial services (1.01%), restaurants and hotels (4.48%), communications (1.03%), utilities (4.68%) and fishing (1.68%). In contrast, mining and hydrocarbons contracted 3.24%, while agricultural activity declined 1.64%, partially offsetting the gains recorded in other sectors. For the January–April 2026 period, Peru's economy grew 3.58% compared with the same period a year earlier. Over the twelve months through April 2026, economic activity expanded 3.59%.

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.