Peru’s economy grew 3.2% year-on-year in Q4 2025, easing from 3.8% in Q3 but marking an eighth straight quarter of expansion, underpinned by robust domestic demand (5.2%). Private consumption increased 3.1% (vs 3.6% in Q3), supported by higher employment and rising labor income. Government consumption slowed to 1.5% (vs 4.7%), driven by increased spending on public administration and defense, as well as on education and health services.
Gross fixed capital formation accelerated slightly, expanding 10.8% (vs 10.7% previously), with public investment up 5.8% and private investment up 12.3%. Net external demand made only a modest contribution to growth, as exports advanced 5.3% while imports climbed 11.6%.
By sector, output gains were led by transformation industries (4.7%) and services (3.4%), while extractive industries were broadly flat (0.0%). On a seasonally adjusted basis, GDP increased 0.6% quarter-on-quarter.
