Peru's economy slows in May as El Niño hits fishing and manufacturing

Peru's gross domestic product grew 1.80% in May, the weakest expansion in six months, according to the National Institute of Statistics and Informatics (INEI). Year‑to‑date, output rose 3.20% from January. The slowdown was driven by sharp declines in three sectors. Fishing output fell 73.1% as the anchoveta catch dropped 97.6% to 31,771 tonnes, a result of El Niño‑related weather disruptions. Manufacturing contracted 10.67%, with a 41.70% drop in primary sub‑sectors that process fish, crustaceans and non‑ferrous metals. Mining and hydrocarbons slipped 0.70% in May but rebounded 2.60% later in the month.

Despite the sectoral weakness, construction, commerce, electricity, gas and services supported growth, with commerce expanding 6.91% and construction 4.66%. In the labour market, INEI reported that 308,100 people in Lima Metropolitan area remained unemployed in the second quarter of 2026, a 5% unemployment rate. The employed population rose 7.5% year‑on‑year, reaching about 5.9 million, and average monthly wages increased 7.5% to S/ 2,317.40.