FX.co ★ Peru GDP Annual Growth Rate Eases to 3.9% in Q1

In the first quarter of 2025, Peru's economy witnessed a growth of 3.9% year-on-year. While this reflects a slight deceleration from the 4.9% growth observed in the previous quarter, it marks the fifth consecutive year of expansion, largely sustained by robust domestic demand, which grew by 4.4%. Private consumption moderated to a growth of 3.8%, compared to 4.2% in the fourth quarter, driven by increases in employment and labor income. Government expenditure revived significantly, rising by 4.7% after a previous decline of 0.7%, due to heightened spending in public administration, defense, education, and health sectors. Gross fixed investment saw a more accelerated increase of 9.7%, with both public and private investments rising by 10.7% and 9.5%, respectively. Net trade also contributed positively to GDP, with exports rising by 14.2% and imports increasing by 15.5%. Sector-wise, production expanded notably in agriculture (4.0%), oil, gas, and mineral extraction (2.4%), manufacturing (4.0%), construction (5.3%), commerce (3.4%), and transportation, warehousing, mail, and courier services (7.4%). When adjusted for seasonal variations, the economy recorded a growth of 0.6%.