National production in Peru increased by 1.75 percent in June 2026 compared to the same month in 2025, even as severe weather conditions linked to El Niño Costero caused sharp contractions in the fishing and agricultural sectors.
Figures released on Wednesday by the National Institute of Statistics and Informatics (INEI) showed that total economic activity in the Andean nation grew by 3.05 percent during the first half of 2026. Over the 12-month period from July 2025 to June 2026, Peru recorded an overall productive expansion of 3.33 percent.
INEI is Peru's central statistical agency, responsible for tracking national economic output, inflation, and employment indicators. Peru, located on the western coast of South America, relies heavily on natural resource extraction, commercial agriculture, and maritime fishing to fuel its economic expansion.
Overall expansion during June was largely driven by robust growth in the construction sector, which expanded by 9.04 percent. This rise reflected a 12.54 percent increase in domestic cement consumption along with a 1.18 percent advance in physical public works projects.
According to the official technical report, domestic cement growth was fueled by progress on private construction projects, civil engineering works for electrification initiatives and mining centers, multi-family residential building construction, and self-built housing developments across the country.
The electricity, gas, and water sector grew by 6.82 percent during the month. Growth within the sector was driven by a 7.55 percent increase in the electricity subsector and a 2.95 percent rise in water distribution, although the gas subsector recorded a negative variation of 2.37 percent.
Peru's commercial sector also posted positive performance in June, growing by 7.81 percent overall. This expansion was supported by a 5.02 percent rise in wholesale trade and a 7.24 percent increase in retail sales, with automotive trade standing out with a growth rate of 30.97 percent.
Collapse in marine fishing and anchovy landings
Despite gains in construction and retail, the fishing sector experienced a severe downturn, falling by 51.94 percent in June. The decline was caused by a 55.09 percent drop in maritime species extraction intended for indirect human consumption, such as the preparation of fishmeal and fish oil.
The drop in raw material was driven by a 99.9 percent reduction in anchoveta landings. Authorities temporarily suspended anchoveta fishing due to climate alterations, as sea surface warming caused by El Niño Costero prompted the cold-water fish species to migrate away from coastal fishing zones.
El Niño Costero is a localized oceanic warming phenomenon off the Pacific coast of Peru and Ecuador. The resulting rise in sea temperatures disrupts the Humboldt Current, a cold ocean stream vital to the anchoveta population. Peru is the world's primary exporter of fishmeal, making anchoveta catches crucial for global agricultural feed markets.
Agricultural contraction and adverse climate impacts
Agricultural and livestock production decreased by 8.12 percent during June 2026. The downturn was led by an 11.96 percent contraction in the agricultural subsector, which suffered dramatic reductions across several primary crops.
Production volumes for olives dropped by 98.3 percent compared to the same month in 2025. Unhusked rice output fell by 45.6 percent, onion production decreased by 32.8 percent, and wheat production dropped by 23.2 percent.
INEI attributed the contractive performance of the farming sector to a reduced total sown area combined with adverse weather conditions. The agency noted that agricultural regions experienced rainfall levels significantly higher than normal historical averages, damaging crops and delaying harvests.
Mining output drops while hydrocarbons edge higher
The mining and hydrocarbons sector contracted by 2.18 percent in June, driven by a 2.52 percent decline in the mining subsector. Meanwhile, the hydrocarbons subsector recorded a modest gain of 0.19 percent.
Decreased output across key metallic minerals explained the weakness in mining. Zinc production fell by 25.8 percent, copper decreased by 4.7 percent, silver declined by 9.0 percent, lead dropped by 12.5 percent, and gold production slipped by 1.1 percent. However, iron production surged by 6,652.2 percent, while molybdenum rose by 5.4 percent and tin increased by 12.9 percent.
Within hydrocarbons, positive growth was sustained by a 10.8 percent increase in natural gas production and a 3.5 percent rise in natural gas liquids. Peru remains a major global producer of base metals, with key mining operations located throughout the Andes mountains, where climatic and geological conditions heavily influence national export revenues.
