Peru: Economic growth decelerates in the second quarter of 2026
GDP reading: Peru’s GDP expanded 2.6% in annual terms in Q2, following a 3.6% expansion in the prior quarter. Q2’s reading was the weakest since Q1 2024. Private consumption and investment were key growth drivers, the former thanks to a strong labor market and the latter due to healthy credit conditions. However, inventories and net exports were substantial drags on growth, with imports of durable consumers goods booming.
Drivers: Compared to the previous quarter’s data, the reading for government consumption worsened in Q2 (+4.1% in annual terms vs +7.1% in Q1). In contrast, readings picked up for private consumption (+3.7% vs +3.6% in Q1), fixed investment (+13.7% vs +10.8% in Q1), exports of goods and services (+3.1% vs +1.2% in Q1) and imports of goods and services (+12.7% vs +11.7% in Q1).
Panelist insight: On the reading and outlook, Goldman Sachs’ Santiago Tellez said:
“The sizable retrenchment in primary activities (agriculture and fishing) in May and June—along with their associated drag on seafood manufacturing—broke the hitherto solid growth momentum during 2026, though we highlight that most services activities remain robust. Going forward, our constructive outlook for copper and especially gold—the country’s main export commodities—should support terms of trade and mining activity. Household consumption will benefit from positive labor market dynamics. The previous headwinds from political uncertainty should dwindle after the resolution of the presidential election winner and rapidly improving business sentiment. The main downside risk to activity stems from the coastal El Niño.”