Peru Economy Grows for 8th Consecutive Quarter

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%.