The economy of Lambayeque grew 9.6% in the second quarter of 2026, the greatest advance among the country’s regions, in a context of recovery of productive activity and increase in formal employment, reported the Peruvian Institute of Economics (IPE).
This performance coincides with the upcoming return of Pope Leo XIV to Chiclayo, the city where he served as bishop, and finds the region with better economic indicators, although it still faces challenges related to water quality, citizen security and job opportunities for young people.
According to the National Institute of Statistics and Informatics (INEI), Lambayeque recorded its highest growth rate since 2024. Likewise, during the first half of 2026, the employed population in Chiclayo reached 302,000 workers, which represented an increase of 3.6% compared to the same period of the previous year.
In that period, formal employment increased 8.7%; while the labor informality rate decreased from 69.2% to 67.7%. For its part, average labor income grew 4.3% in real terms, below the national increase of 5.4%.
Furthermore, the IPE indicated that between 2020 and 2025 the Lambayeque economy grew at an average annual rate of 2.9%, below its previous performance. In this context, monetary poverty, which had decreased from 58.3% in 2004 to 10.2% in 2019, subsequently increased to 17.9% and stood at 14.5% in 2025.
Gaps in competitiveness and job opportunities
Despite the economic recovery, the region maintains structural challenges.19.6% of young people between 15 and 29 years old do not study or worka proportion that represents the second highest in the country, after Loreto (23.7%).
Risks from the El Niño phenomenon
According to the National Center for Disaster Risk Estimation, Prevention and Reduction (Cenepred), more than 550,000 inhabitants of Lambayeque, equivalent to 46% of its population, reside in districts with a very high risk of flooding due to rains associated with this climatic event.
The exhibition also includes more than 311,000 agricultural hectares and more than 1,000 kilometers of paved and unpaved roads located in districts with high or very high risk of flooding. As of October 2026, eight of the 12 drainage projects of the municipalities and the Regional Government of Lambayeque were abandoned or paralyzed, according to the IPE report.
Gaps in water service
According to the National Survey of Budget Programs (Enapres), in 2023-2025, the proportion of households that had access to safe water went from 8.3% to 9.7%, a figure well below the national average of 41.7%. Likewise, service continuity decreased from 11.9 to 11.3 hours per day, its lowest level since 2007. This result led Lambayeque to drop from 19th to 23rd place among the 25 regions of the country.
It should be noted that the IPE warned that intense rains would affect the water infrastructure and generate new service cuts. In this context, the region recorded 832 cases of dengue per 100,000 inhabitants as of October 24, 2026, the third highest rate in the country.
Insecurity and opportunities for tourism
In terms of citizen security, Lambayeque registered 5,925 complaints per 100,000 inhabitants during 2025, the third highest rate nationally and 58% higher than the country average (3,743). Among the crimes with the greatest increase, extortion stood out, the complaints of which multiplied by eight in five years. In the same period, complaints of fraud tripled and those of theft doubled.
Investment portfolio
The IPE highlighted the possibility of promoting S/1,351 million in prioritized investments through the Works for Taxes (OxI) mechanism, including the improvement of the water provision service for Tinajones. Added to this is the new Olmos Project concession, promoted by the Private Investment Promotion Agency (ProInversión) through a Public-Private Partnership (PPP) for S/400 million, which would ensure the irrigation of more than 30,000 hectares.
