Substantial Economic Expansion in 2024
Peru was one of the fastest-growing countries in Latin America in 2024, registering an economic expansion of 3.33% for the year. Along with Brazil, Peru led regional economic growth, reflecting a steady recovery and robust performance across multiple sectors. According to the Ministry of Economy and Finance (MEF), this growth marked the most substantial expansion since 2021 and reinforced Peru’s position as one of the leading economies in Latin America.
Key Drivers of Economic Growth
The economic expansion in 2024 was primarily driven by the strong performance of primary sectors, which benefited from neutral climate conditions and increased mineral extraction. Additionally, non-primary sectors saw a significant recovery, fueled by the rebound in domestic demand, greater investment, and rising household consumption.
Performance of Primary Sectors
According to the National Institute of Statistics and Informatics (INEI), Peru’s primary sectors maintained their dynamism throughout 2024, with the fishing sector standing out as the top performer. The fishing industry surged by an impressive 24.9%, attributed to a record-high anchoveta catch enabled by favorable oceanographic conditions. This sector’s outstanding results were crucial in driving overall economic growth in Latin America.
The mining sector, another pillar of Peru’s economy, grew by 2% due to increased molybdenum, gold, and silver production. The year 2024 marked the first full year of operations for the Quellaveco mine, significantly contributing to mining output. Likewise, the hydrocarbons subsector expanded by 2.1%, driven by higher crude oil extraction from Lot 95, where new wells became operational. The agricultural sector also showed resilience, growing by 4.9%, thanks to favorable harvests and strong agro-exports, particularly in blueberries, which maintained high international demand.
Recovery of Non-Primary Sectors
Meanwhile, non-primary sectors also demonstrated notable improvement. The construction sector grew by 3.6%, supported by an uptick in private investment and increased public infrastructure projects. Similarly, the services sector expanded by 3.3%, benefiting from heightened economic activity, while the commerce sector recorded a 3% increase. Additionally, non-primary manufacturing rose by 2.5%, reflecting greater production across various industries.
Domestic Demand and Household Consumption Boost Economic Growth
The MEF highlighted that domestic demand growth, mainly driven by improved private investment and higher public works execution, was fundamental in boosting household consumption. Peru’s robust economic performance in 2024 contributed significantly to economic growth in Latin America, reinforcing the nation’s role as a key player in the region.
Strong End to 2024 with High December Growth
The INEI reported that Peru’s GDP sharply increased by 4.85% in December 2024, the highest monthly growth rate since May 2024. This marked the ninth consecutive month of economic expansion, reinforcing the country’s recovery trajectory.
Significant gains in primary and non-primary sectors bolstered economic activity in December. The primary sectors experienced remarkable growth, expanding by 9.1%, the highest rate since May. The fishing industry alone soared by 76.8%, while primary manufacturing increased by 37.5%, both fueled by the strong anchoveta harvest. Additionally, the agricultural sector grew by 7.5%, driven by higher yields of export crops such as grapes, blueberries, and mangoes and increased poultry farming. The mining sector returned to positive growth with a 2% expansion after two months of contraction, supported by higher molybdenum, copper, gold, and silver production, although zinc extraction declined.
Non-primary sectors also maintained strong momentum, expanding by 3.8% in December, marking nine consecutive months of growth. The commerce sector rose by 3.6%, while services posted a 4.1% increase, benefiting from improved household spending amid rising employment levels. Non-primary manufacturing grew by 3.4%, with notable increases in the production of textiles, clothing, chemicals, furniture, and wood products, among others.
Economic Outlook for 2025
Peru’s economic recovery is expected to gain further traction in the coming months, supported by positive indicators across key areas. For instance, in January 2025, electricity production increased by 2%, marking its eighth consecutive month of growth. Investment and consumption indicators also showed promising signs. The importation of capital goods, including construction materials and transportation equipment, surged by 26.7% in January, extending a ten-month growth streak. Additionally, imports of consumer goods rose by 22.2%, accumulating five months of continuous expansion.
Another positive indicator is the BBVA Big Data Consumption Index, which registered a 9.3% increase in January 2025, maintaining a positive growth trend for fourteen consecutive months. This reflects a continued rise in household consumption, reinforcing optimism about Peru’s economic outlook for 2025.
Summary
Peru demonstrated strong economic growth in Latin America in 2024, registering a 3.33% expansion, making it one of the fastest-growing economies in the region. This growth was fueled by the strength of its primary sectors, particularly fishing, mining, and agriculture, alongside improvements in non-primary sectors such as construction, services, and commerce. December 2024 marked a peak in economic performance, with GDP surging by 4.85%, the highest monthly growth rate of the year. The INEI and MEF emphasized the role of rising domestic demand, investment, and exports in driving this expansion. Peru’s positive trajectory will continue into 2025, supported by increased electricity production, capital goods imports, and rising household consumption. As one of the leaders of economic growth in Latin America, Peru’s resilience and sectoral diversification reinforce its position as a crucial player in regional economic development.