Peru construction sector grows 10.6% through August

Peru's construction sector grew by 10.6% between January and August, according to the latest Economic Construction Report from the Peruvian Chamber of Construction (CAPECO). This growth represents the highest expansion for the first eight months of a year since 2013, when excluding the post-pandemic rebound.

The expansion has been driven by significant increases in private investment, particularly within the mining sector, and a rise in public works execution, which reached 18.3% in August. Public investment has reached nearly S/ 35,000 million, representing 49% of the budget execution.

Despite this momentum, CAPECO executive vice president Guido Valdivia warned that the El Niño phenomenon (FEN) poses a threat to future performance, particularly during the first quarter. Additionally, business expectations have seen a slight decline due to political uncertainty and rising prices. While the Central Reserve Bank of Peru has adjusted its 2026 sectoral projections downward, it has increased its forecast for 2027 to 4.5%.