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Peru’s Construction Ends 2025 Strong as Mining Investment Set to Peak in 2026

Private investment via OxI/APPs powered the rebound despite weak public works execution.

Overview

  • Construction likely expanded about 6% in 2025 after a 12.5% jump in November, marking the sector’s best year since 2013 when excluding the post‑pandemic rebound.
  • Capeco attributes the upturn to private investment growing near 9.5% plus record Obras por Impuestos awards of roughly S/5,000 million and progress in public–private partnerships.
  • Roughly S/19,600 million of the 2025 public investment budget is expected to go unexecuted, with ANIN short of funds and uneven ministry and municipal execution, curbing infrastructure and jobs.
  • Expectations for 2026 diverge as Capeco’s firm survey points to 6.3% sector growth versus lower forecasts from BCRP (2.5%), MEF (3.1%), BBVA (2.5%) and Macroconsult (4%), prompting calls to restore VIS support, align urban planning with major projects and strengthen anti-crime tools in construction.
  • Mining investment is projected to reach about US$6.4 billion in 2026—its highest in a decade—with exploration up 34.5% through September, while industry leaders warn that expanding illegal gold mining linked to organized crime threatens revenues and standards.