Overview
Peru's economy grew 1.8% in May compared with the same month a year earlier, according to figures published by the INEI statistics agency on Wednesday. That pace is the slowest recorded in 2026 and falls well below the 3.2% growth anticipated by analysts. The May reading also represents a decline from April's 3.73% year-on-year expansion.
Sector performance
The INEI data highlight pronounced weakness in specific sectors. The fishing sector contracted by 73.1% year-on-year in May, a steep reduction in output. Manufacturing also posted a double-digit decline, shrinking 10.7% compared with May of the prior year.
Drivers cited
INEI linked the dramatic fall in fishing output to reduced catches of marine species, especially anchoveta. The agency said warm surface water associated with the El Niño climate phenomenon pushed these fish into deeper waters, which reduced harvest volumes and in turn depressed sector activity.
INEI also noted broader climate-related impacts on production. In its report the agency said, "Climate-related changes have affected the availability of aquatic species and the production cycle of the textile industry." That statement ties the environmental shifts to both fishing volumes and textile sector production dynamics.
Implications
The May readings underscore an economy experiencing uneven sectoral performance, with pronounced declines concentrated in fishing and manufacturing. The result was an aggregate growth rate that missed market expectations and signaled a softer near-term momentum than the April figures suggested.
Key points
- Peru's GDP grew 1.8% year-on-year in May, the slowest monthly expansion in 2026.
- Fishing output plunged 73.1% year-on-year, while manufacturing fell 10.7%.
- INEI attributed part of the weakness to El Niño-linked warm surface water affecting anchoveta catches and textile production cycles.
Risks and uncertainties
- Ongoing climate-related variability - particularly El Niño effects - may continue to disrupt fishing volumes and related industries.
- Persistent weakness in manufacturing output introduces uncertainty for industrial demand and sectors linked to factory activity, such as textiles.