Latin American economic trends show varied growth in Peru, Paraguay, and Brazil

Economic indicators across Latin America show varied growth patterns. In Peru, formal employment rose 4.4% year-on-year in July 2026, adding 268,000 jobs, largely driven by the private sector. However, BBVA Research has lowered its GDP growth projections for Peru to 2.9% for 2026 and 2027, citing the potential impact of the El Niño phenomenon on the agriculture and fishing sectors.

Real estate and logistics markets in Lima are experiencing significant expansion. Demand for Class A offices grew by 172.7% in the first half of the year, while logistics space absorption saw a year-on-year increase of over 200%. This growth is supported by rising expectations for private investment.

In other regions, Paraguay's growth forecast was raised by the World Bank to 4.7% for 2026, outperforming regional averages. Meanwhile, the state of Pará in Brazil reported a 1.17% GDP increase in the second quarter of 2026, surpassing the national average of 0.48%, driven by strong performance in the agricultural and industrial sectors.