Peru’s Economy Rebounds with 4.52% June Growth as Manufacturing, Construction Surge

Lima, August 2025 – Defying global headwinds, Peru’s economy roared back to life in June with a robust 4.52% year-on-year expansion, according to official data from the National Institute of Statistics and Informatics (INEI). This surge—the strongest in over a year—signals a decisive turnaround, fueled not by traditional mining exports but by resurgent domestic industries. For investors and policymakers tracking Peru economic growth, the data reveals a shifting foundation for recovery as manufacturing and construction take center stage.

Peru’s Economic Engine: Manufacturing and Construction Lead Recovery

Peru’s growth story in June 2025 was written by its homegrown sectors. Manufacturing exploded by 7.26%, driven by increased production of textiles, food products, and machinery. Construction followed closely with a 9.57% leap, supported by public infrastructure projects and private real estate development. Agriculture, another critical domestic pillar, grew 8.76% due to higher yields of coffee, avocados, and quinoa.

These sectors collectively created over 120,000 jobs in Q2 2025, per the Ministry of Labor and Employment Promotion. The momentum propelled first-half growth to 3.33%, while the trailing 12-month figure reached 3.75%. Despite this progress, Peru’s Ministry of Economy and Finance remains cautious, recently revising its full-year 2025 forecast downward to 3%-3.5%. Economists attribute this prudence to global copper price volatility and slower-than-expected export recovery.

Mining Sector Lags as Global Headwinds Persist

While domestic industries thrived, mining—Peru’s traditional economic backbone—posted a meager 1.01% growth in June. This marginal improvement followed a 5.8% contraction in May, highlighting persistent challenges. As the world’s second-largest copper producer, Peru remains vulnerable to international demand fluctuations and trade barriers. The China-led slowdown and supply chain disruptions have kept copper prices 18% below their 2024 peak, impacting revenues.

New projects like the $2.5 billion Quellaveco expansion offer long-term hope, but short-term risks loom. Public debt, though stable at 35% of GDP, could pressure fiscal policy if metal exports weaken further. Central Bank of Peru President Julio Velarde noted, “Inflation control and exchange rate stability provide a buffer, but global uncertainty requires agile policy.”

Peru’s June rebound showcases a resilient, diversified economy—yet mining’s struggles remind us that sustained growth hinges on stable global markets and strategic investment. Monitor copper prices and domestic job data for signs of enduring momentum.

Must Know

What drove Peru’s 4.52% economic growth in June 2025?
Manufacturing (7.26%), construction (9.57%), and agriculture (8.76%) were the primary drivers, offsetting mining’s weak performance. This reflects strengthening domestic demand and public infrastructure spending.

Why is Peru’s mining sector underperforming?
Global copper demand declines, trade barriers, and price volatility have stifled growth. Mining expanded just 1.01% in June after a sharp May contraction, per INEI data.

How has Peru’s 2025 growth forecast changed?
The Ministry of Economy lowered its 2025 forecast to 3%-3.5% in July, citing external risks despite strong Q2 results. First-half growth reached 3.33%.

What risks could derail Peru’s recovery?
Slower Chinese demand for copper, inflationary policy missteps, or reduced infrastructure investment could impede growth. Global commodity prices remain a critical variable.

Is Peru’s public debt a concern?
Debt stands at a manageable 35% of GDP, but overreliance on mining revenues could strain finances if export prices fall, warns the IMF’s 2025 Country Report.

How does this growth impact everyday Peruvians?
Surging manufacturing and construction created 120,000+ jobs in Q2, boosting household incomes—though mining-dependent regions face headwinds.