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Peru’s Construction Sector Grew 6.5% in 2025, Best Since 2021

Capeco credits private investment as the driver of the rebound.

Overview

  • November output rose 9.8% and Capeco estimates December at 10.6%, extending the streak to seven consecutive months of expansion.
  • Private initiatives led the upswing, with Obras por Impuestos awards topping S/5,000 million and mining investment up nearly 23% through November.
  • Public works reached a record 82.5% execution rate, yet about S/12,400 million was left unspent, and Capeco flagged procurement rules that favor foreign conglomerates over local firms.
  • Material costs fell for seven straight months, led by steel, though prices remain more than 22% above March 2020 levels.
  • Capeco highlights stagnant construction employment and projects a first‑quarter 2026 slowdown linked to seasonality, elections and persistent public‑sector bottlenecks.