Peru Mining Exports and Tax Revenue Shrink Fiscal Deficit
Peru · MINING
Key Facts
- —What happened Peru’s fiscal deficit dropped to 1% of GDP by July 2026, down from 2.1% in Q1.
- —How big Mining exports reached US$28.962 billion in January to April 2026, up 60.6% and representing 76.1% of total exports.
- —The catch The Finance Ministry expects the deficit indicator to edge up in coming months on El Niño-related spending, pension outlays and fuel subsidies.
- —Who pays Higher corporate income tax, up 31.7%, and domestic sales tax, up 10.6%, drove revenue.
- —What comes next The Finance Ministry projects mining fiscal revenue could exceed S/40,000 million (about US$10.2 billion) in 2026.
Higher tax revenue from a mining boom cut Peru’s fiscal deficit to 1% of GDP by July 2026.
Peru’s fiscal deficit fell to 1% of GDP as of July 2026, thanks to higher tax revenue from a mining boom. Mining exports reached US$28.962 billion from January to April 2026, up 60.6% year on year, the Energy and Mines Ministry reported.
Fiscal Deficit Declines on Mining Tax Revenue
Peru’s Finance Ministry announced on 24 August 2026 that the annualized fiscal deficit fell to 1% of GDP as of July. This continues a steady decline from 2.1% of GDP in the first quarter and 1.3% in the second quarter.
The ministry attributed the improvement mainly to higher tax revenue, driven by strong economic activity and high export prices. Profit transfers from public entities also contributed to the better fiscal position.
Central Reserve Bank figures cited by the ministry show general government current revenue grew 13.7% in real terms between January and July 2026. This robust revenue growth helped narrow the fiscal gap significantly.
Non-financial government expenditure increased 4.3% in real terms over the same period. Current expenditure rose 8.2% in real terms, reflecting ongoing public spending commitments.
Mining Exports Surge Past US$28.9 Billion
Peru mining exports reached US$28.962 billion in the first four months of 2026, up 60.6% year on year, the Energy and Mines Ministry reported. The surge was driven primarily by higher international prices, especially for copper, which benefited from high international prices.
The Energy and Mines Ministry reported that mining exports reached US$28.962 billion between January and April 2026. This represented 76.1% of Peru’s total exports and a 60.6% increase versus the same period in 2025.
April 2026 exports of metallic and non-metallic minerals reached US$7.313 billion, highlighting a strong export surge. The mining boom has become a key driver of Peru’s economic performance.
High prices for copper, gold, and silver have fueled this export growth, according to ministry reports. The mining sector continues to dominate Peru’s export profile, underpinning fiscal revenue.
Private Investment Grows Fastest Since 2010
Private investment grew 17.6% year-on-year in the second quarter of 2026, according to the Finance Ministry. This is the highest growth rate since 2010, when the post-pandemic rebound is excluded.
This performance means 10 consecutive quarters of expansion in private investment, ministry data show. The surge contributed to 5.2% growth in domestic demand in the second quarter.
Mining investment grew 42.8% in nominal terms in the second quarter, leading the overall increase. Key projects include Tía María, Reposición Ferrobamba, and Romina, plus sustaining investments by major firms.
Non-mining investment also contributed, including large infrastructure such as Lima’s Metro Line 2 and road works. The broad-based investment growth signals strong confidence in Peru’s economy.
Tax Revenue Driven by Corporate and Sales Taxes
Third-Category Income Tax, which is corporate income tax on industrial and commercial activities, rose 31.7% in real terms. This was a major factor in the overall revenue increase reported by the ministry.
Domestic Sales Tax, known as IGV interno, rose 10.6% in real terms, reflecting robust business activity and consumption. These tax increases helped fund government expenditure and reduce the deficit.
The mining boom directly boosted corporate tax revenue, as mining companies reported higher profits. High export prices for metals translated into larger tax payments to the government.
Gestión reported that mining-related fiscal revenue, including tax and non-tax, reached S/22,787.4 million (US$5.83 billion) in the first six months of 2026. This was an 80.1% increase over the same period in 2025.
June Mining Revenue Sets New Records
In June 2026 alone, mining fiscal revenue surged to S/3,615.8 million (US$925 million), a 152.7% increase versus June 2025. Most of this came from metallic mining tax revenue, according to reports.
This six-month revenue is equivalent to 87.6% of all record mining revenue collected in 2025. It already exceeds what the state received from mining in all of 2023 and 2024.
Transfers to regional and municipal governments in mining areas reached S/13,095 million (US$3.35 billion) as of 5 August 2026. This is the highest level in the historical series, according to the ministry.
A ministry representative projected that mining fiscal revenue in 2026 could exceed S/40,000 million (US$10.24 billion). This would maintain a strong trend into 2027, supporting fiscal stability.
Government Spending Rises Moderately
Non-financial government expenditure increased 4.3% in real terms over January to July 2026. This was mostly due to current expenditure rising 8.2% in real terms, according to ministry data.
The moderate spending growth contrasts with the strong revenue increase, helping to narrow the fiscal deficit. The ministry emphasized that higher tax revenue allowed the deficit to keep declining.
Government spending focused on current expenditure, which includes salaries and operational costs.
The fiscal adjustment reflects a balance between supporting economic activity and maintaining discipline. The mining boom has provided the revenue needed to achieve this balance, the ministry said.
Mining Investment Drives Economic Expansion
Mining investment grew 42.8% in nominal terms in the second quarter of 2026, leading private investment growth. This was the main driver of the 17.6% overall increase, according to the Finance Ministry.
Key projects include Tía María, Reposición Ferrobamba, and Romina, which are expanding Peru’s mining capacity. Sustaining investments by Antamina, Shougang, and Antapaccay also contributed significantly.
The mining investment surge reflects high metals prices and a favorable investment climate in Peru. This has boosted Peru mining exports and overall economic activity, according to reports.
Non-mining investment also grew, including infrastructure projects like Lima’s Metro Line 2 and road works. This broad-based investment suggests sustained economic momentum in the coming quarters.
Outlook for Peru Mining Exports and Economy
Peru mining exports are expected to remain strong, supported by high metals prices and new projects. The Finance Ministry projects continued fiscal revenue growth from the mining sector into 2027.
The Finance Ministry expects the deficit indicator to edge up in coming months, citing El Niño prevention spending, unbudgeted pensions and fuel subsidies. Higher tax revenue from the mining boom provides a solid foundation for fiscal consolidation.
Private investment growth of 17.6% suggests strong business confidence in Peru’s economy. This could translate into sustained economic expansion and further tax revenue gains.
However, the ministry noted that global metals prices could fluctuate, affecting future revenue. Peru mining exports remain a key risk factor for the fiscal outlook, it said.
Frequently Asked Questions
What is the current fiscal deficit in Peru?
Peru’s annualized fiscal deficit fell to 1% of GDP as of July 2026, down from 2.1% in Q1. The Finance Ministry attributes this to higher tax revenue from the mining boom.
How much are Peru mining exports worth?
Peru mining exports reached US$28.962 billion for January-April 2026, up 60.6% year-on-year.
What is driving the growth in private investment?
Private investment grew 17.6% in Q2 2026, the fastest since 2010, mainly driven by mining investment, which grew 42.8%. Key projects include Tía María and Reposición Ferrobamba.
Why is tax revenue increasing in Peru?
Tax revenue grew 13.7% in real terms, driven by higher corporate income tax, up 31.7%, and domestic sales tax, up 10.6%. The mining boom and high export prices are key contributors.
What is the outlook for Peru’s fiscal position?
The Finance Ministry projects mining fiscal revenue could exceed S/40,000 million (about US$10.2 billion) in 2026. This should help maintain the deficit at low levels if metals prices remain strong.
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