Peru’s Economic Activity Growth Declines in January 2025

In January 2025, Peru’s GDP growth slowed to 4.07% year-on-year from 4.85%. Transport and construction showed improvements, but several sectors including manufacturing and agriculture experienced declines. The national production index rose by 0.26%, indicating minor growth amid the slowdown.

In January 2025, Peru’s GDP grew by 4.07% year-on-year, a decline from the previous month’s growth of 4.85%. This marks the tenth consecutive month of economic expansion, indicating sustained economic activity despite the slight slowdown. The transport sector showed notable output acceleration at 7.85%, up from 7.27% in December, while construction experienced a strong rebound at 4.13%, compared to a contraction of 0.88% the prior month.

Conversely, various sectors experienced a slowdown in growth. Manufacturing output decreased significantly to 5.53% down from 11.85%, while commerce saw a decline from 3.64% to 3.16%. Other sectors, including mining (1.39%, down from 1.97%), agriculture (3.24%, falling from 7.54%), electricity, gas, and water (1.46%, down from 1.74%), and accommodation and restaurants (3.32%, down from 4.54%), also reflected a reduction in growth rates.

The seasonally adjusted national production index rose by 0.26% compared to the previous period, indicating some positive developments amidst the overall slowdown in economic growth.

Peru’s economic growth is experiencing a gradual easing, with January 2025 GDP growth at 4.07%. While transport and construction sectors have shown positive performance, significant slowdowns in manufacturing, commerce, and other key sectors highlight the challenges ahead. The rise in the national production index suggests potential for recovery, yet caution is warranted given the mixed signals from various industries.

Original Source: www.tradingview.com