Peru Congress Approves $2.8 Billion El Niño Budget as 2-5C Warmer Seas Hit Fishing
Updated
Updated · Reuters · Jul 22
Peru Congress Approves $2.8 Billion El Niño Budget as 2-5C Warmer Seas Hit Fishing
1 articles · Updated · Reuters · Jul 22
Summary
$2.8 billion in extra spending approved on July 15 will fund infrastructure works and preparations for heavy rains as Peru braces for a strong or even super-strong El Niño.
Sea surface temperatures are already 2C to 5C above normal, disrupting marine ecosystems, cutting fish stocks and driving hundreds of hungry pelicans into ports and coastal markets.
The fishing sector is showing early damage: industrial activity fell 31% in the first five months, and exporters now fear 2026 sales will miss a $5 billion target after reaching $4.6 billion in 2025.
Agriculture has held up better so far, growing 0.4%, but producers say current preparations are inadequate and warn El Niño could erase nearly $1 billion in expected extra export revenue.
The threat reaches across a broader economy that depends heavily on fishmeal, farm exports such as blueberries, and copper, with industry groups warning this could be Peru's worst El Niño in 50 years.
Peru’s fishing ban is causing global price shocks. Which industries worldwide will be hit hardest by the fishmeal shortage?
While El Niño devastates Peru's fisheries, could warmer waters create unforeseen opportunities for other marine species?
As El Niño devastates Peru's economy, can climate-resilient technology offer a permanent escape from this recurring crisis?
Peru’s $2.8 Billion El Niño Budget: Urgent Action Against a $4.7 Billion Economic and Environmental Crisis
Overview
Peru is taking urgent action to address the threat of El Niño by committing a $2.8 billion budget for mitigation and preparedness. This response comes as the country faces projected losses of $4.7 billion, mainly from expected infrastructure damage along the northern coast. Interim President Jose Balcazar has declared a 60-day state of emergency in nearly 40% of districts, enabling rapid resource mobilization. Regional and municipal governments are leading local efforts, supported by technical guidance from the National Civil Defense Institute. Political leaders are also considering further emergency measures to strengthen and streamline the national response.