Peru Economy Grows 2.6% in Q2 as Private Investment Surges

Peru’s economy expanded 2.6% year over year in the second quarter of 2026, slightly exceeding market expectations as strong domestic demand and private investment helped offset weakness in manufacturing and fishing.

The National Institute of Statistics and Informatics reported Friday that second-quarter GDP growth surpassed the 2.5% median forecast of economists surveyed by Bloomberg. However, economic growth moderated from the 3.6% recorded in the first quarter.

Domestic demand climbed 7.4%, supported by a 3.3% increase in household consumption and a 3.2% rise in government spending. Private investment was a major growth driver, surging 20.9%, while public investment declined 2.8%.

Gross fixed investment advanced 14.3%, helped by an 8.9% increase in construction activity and a 22.7% jump in machinery and equipment purchases. Trade activity also performed strongly, rising 7.3%, while transportation, storage, mail and courier services grew 2.3%.

Peru’s exports of goods and services increased 2.7%. Lead ore exports surged 73.1%, refined copper shipments jumped 59.5%, and exports of chilled and frozen fish and seafood products rose 28%. Imports climbed 18.6%, driven by sharply higher purchases of vehicles and communications equipment.

Despite solid investment and consumption, several key industries struggled during the quarter. Manufacturing contracted 4.9%, partly due to the El Niño phenomenon, which reduced raw material supplies for fish processing and disrupted textile operations.

Fishing and aquaculture recorded the steepest decline, plunging 48.7% as marine fishing fell 50%. Agriculture, livestock, hunting and forestry activity decreased 2%.

Overall, Peru’s GDP grew 3% during the first half of 2026. Economic output increased 3.3% over the latest four-quarter period, highlighting continued expansion despite significant weakness in some resource-dependent sectors.