Farming and Building Lead Peru’s Surprising Economic Expansion in 2025

Peru’s economy grew 3.13% between January and May 2025, according to official government data. Over the year ending May, growth reached 3.4%.

This expansion came mostly from local farming, construction, logistics, and retail sectors—while mining and fishing, once Peru’s top earners, declined.

Farmers delivered big harvests of beans, olives, avocados, quinoa, potatoes, and rice. Better weather, above-average rains, and smarter planning after earlier climate problems drove these gains.

As a result, agricultural output increased by 2.5%, and farm exports grew by more than 20%, generating nearly $3 billion. Livestock production saw a 3% rise, while fruit and cocoa exports posted double-digit growth.

Construction also pushed the economy forward. Cement demand rose almost 8%. Public and private investment funded more projects—roads, utilities, and energy. The building sector grew by about 4% as state budgets for infrastructure expanded.

Transport and logistics grew with the rest of the economy. The freight market is now worth $8.3 billion. New infrastructure projects, like improvements at the Port of Callao and the Chancay port, support more trade with Asia and lower shipping costs.

Air and sea shipping volumes were up, making it easier to move exports. Retail business also strengthened, with car sales rising just over 6%.

Factory output rose by 2.4%, thanks to better food and drink production and higher demand. Power, gas, and water services grew 1.5%, led by hydropower.

Still, the economy’s older pillars—mining and fishing—struggled. Mining output dropped nearly 7%, mainly because of falling copper production, social unrest, and stalled investment in new mines.

Copper output stayed flat at 2.8 million tons for three years. Fishery activity shrank more than 4%, as anchovy catches—a major export—declined. Peru’s new pattern: its economy now relies more on farming, shipping, and construction, and less on mining wins.

This has helped the country resist shocks and keep jobs growing, but dependence on volatile world prices remains. The changing landscape affects global supplies for metals and foods, so shifts in Peru matter well beyond its borders.

The country’s ability to adapt, invest, and connect with markets explains how growth continues, even when old engines sputter. This experience offers real lessons for other nations facing unstable global markets.

More: Latin America news in English, every day from The Rio Times.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error