World June 15, 2026 12:15 PM

Peru’s Economy Posts 3.73% Growth in April, Led by Construction and Trade

Construction activity and retail spending propelled year-on-year expansion while mining and hydrocarbons contracted

By Priya Menon
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Peru’s economy grew 3.73% in April 2026 compared with the same month a year earlier, with construction and trade sectors delivering the strongest gains. Month-on-month activity rose 0.59% after a sharp natural gas emergency in March. Mining and hydrocarbons declined, while agriculture recorded negative growth amid smaller planted areas and adverse weather.

Peru’s Economy Posts 3.73% Growth in April, Led by Construction and Trade
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Key Points

  • Construction was the principal growth driver in April, expanding 12.88% year-on-year and supported by higher cement consumption (+13.92%) and increased public works progress (+11.22%) - impacts sectors tied to infrastructure, materials and engineering contractors.
  • Trade and retail sectors showed robust performance: total trade rose 7.31%, retail +5.80% and automotive sales surged 25.22% amid promotional campaigns - benefiting wholesalers, retailers, and vehicle manufacturers/dealers.
  • Mining and hydrocarbons contracted (-3.24%), with hydrocarbons down 24.75% due to lower extraction volumes, while agriculture also declined (-1.64%) because of smaller planted areas and adverse climatic factors - weighing on extractive and agricultural value chains.

Peru's economic output expanded 3.73% in April 2026 year-on-year, slightly surpassing the median 3.6% forecast from a Bloomberg survey of nine economists, according to data released by the national statistics institute, INEI. On a sequential basis, GDP increased 0.59% compared with March, a month marked by one of the country’s most serious natural gas emergencies on record.

Construction drove the April advance. The construction sector posted a 12.88% increase year-on-year, underpinned by a 13.92% rise in domestic cement consumption and an 11.22% improvement in the physical progress of public works. The expansion reflected momentum in private infrastructure spending across mining, telecommunications, commercial and services segments, along with investments in road infrastructure and basic services carried out by local and regional governments.

Trade and retail strengthened, contributing materially to the headline result. The overall trade sector expanded 7.31% year-on-year. Within that, wholesale trade rose 5.73%, supported by higher sales of metals, construction materials, machinery and household goods. Retail trade increased 5.80%, with gains concentrated in department stores, hardware outlets and supermarkets. Automotive trade recorded a particularly large rise of 25.22%, boosted by promotional events such as the Great Expomotor Sale and Superbike Meet 2026 that stimulated sales of light and heavy vehicles.

Manufacturing and services showed positive, if more modest, growth. Manufacturing production climbed 2.17% overall, composed of 4.28% growth in primary manufacturing and 1.38% in non-primary manufacturing. The accommodation and restaurants sector expanded 4.48%, business services rose 3.27%, and government services increased 4.08% in April.

Downside contributions came from mining, hydrocarbons and agriculture. The mining and hydrocarbons sector contracted 3.24% year-on-year. Within that category, hydrocarbons plunged 24.75%, reflecting lower extraction volumes of crude oil, natural gas and natural gas liquids. Agricultural activity fell 1.64% overall; the agricultural subsector weakened by 3.33% as volumes of olives, peppers, paprika, coffee and potatoes declined due to reduced planted areas and adverse climatic factors.

While April’s data show an economy with mixed sectoral performance, the pronounced strength in construction and trade contrasted with notable weakness in hydrocarbons and agriculture. The month-on-month increase following a severe gas supply incident in March suggests some recovery in activity, but sectoral divergences remained clear in the INEI figures for April.


Data snapshot:

  • Overall GDP: +3.73% year-on-year; +0.59% month-on-month
  • Construction: +12.88% year-on-year; cement consumption +13.92%; public works physical progress +11.22%
  • Trade: +7.31% year-on-year; wholesale +5.73%; retail +5.80%; automotive +25.22%
  • Manufacturing: +2.17% year-on-year (primary +4.28%; non-primary +1.38%)
  • Accommodation & restaurants: +4.48%; Business services: +3.27%; Government services: +4.08%
  • Mining & hydrocarbons: -3.24% (hydrocarbons: -24.75%)
  • Agriculture: -1.64% (agricultural subsector: -3.33%)

Risks

  • Residual effects from the severe natural gas emergency in March could continue to influence month-on-month activity and energy-dependent sectors - particularly affecting industries reliant on stable gas supplies.
  • A sharp drop in hydrocarbons extraction (-24.75%) poses downside risk to overall mining and energy sector output, which could influence export-related revenues and segments dependent on hydrocarbon feedstocks.
  • Reduced planted areas and adverse climatic factors that drove a 3.33% fall in the agricultural subsector create uncertainty for agricultural output and supply of key crops such as olives, peppers, paprika, coffee and potatoes.

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