Peru | Economic Outlook – Second Quarter

Summary

The economy grew 2.8% year-on-year in 2Q, driven by the expansion of domestic demand (+6%). On the fiscal front, the deficit narrowed to 2.6% of GDP due to higher revenues, while public debt stood at 31.8% of GDP. Externally, the current account posted a surplus of 1.9% of GDP.

Key points

• Key points:
• GDP grew 2.8% YoY in 2Q25, with domestic demand contributing 6.2%, highlighting private investment (+9.0%) and inventory accumulation (+1.6 pp contribution).
• The fiscal deficit of the NFPS (Non-Financial Public Sector) narrowed to 2.6% of GDP (vs. 3.3% in 1Q25), explained by higher revenues; public debt stood at 31.8% of GDP.
• In 2Q25, the current account recorded a surplus of 1.9% of GDP (last four quarters), down from 2.2% in the previous quarter, explained by a larger primary income deficit (from 6.3% to 6.6%) due to higher profit remittances abroad, particularly in the mining and banking sectors.
• In 2Q25, national savings stood at 23.2% of GDP, with private savings falling to 20.0% and public savings rising to 3.2% due to higher fiscal revenues. Total investment remained at 21.3% of GDP, resulting in an accumulation of external assets (negative external savings), which narrowed from 2.1% of GDP in 4Q24 to 1.9% in 2Q25.

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