Peru: Potato production contributes to economic growth in Huánuco
Huánuco closed the first quarter of 2025 with economic growth of 4.5%, ranking among the most dynamic regions in the country.
According to the Network of Development Studies (REDES), this progress is primarily explained by the upswing in the agricultural sector and the execution of major public works projects. This information comes from technical sources and does not necessarily represent the editorial position of Diario Ahora.
Agriculture as a regional engine
According to REDES, agricultural activity grew 13% in the first months of the year, driven by favorable weather conditions that benefited crops such as squash, coffee, corn, and, especially, potatoes. The latter registered a 43% increase in production, consolidating its position as the region’s main crop and a vital source of income for thousands of farming families.
"These activities not only boost the economy, they also provide jobs for many families. In the agricultural sector alone, there are more than 232,000 people working in Huánuco, almost 70% of the employed population," said Gabriela Espinar, an economist at REDES. However, she emphasized that regional agriculture faces the challenge of modernizing to attract investment and generate quality jobs.
Construction and formal employment
The construction sector also showed positive growth, exceeding 7%, thanks to the start of projects such as the Huánuco-Conococha highway, the improvement of the Daniel Fonseca Tarazona school in Llata, and flood prevention efforts. These investments not only boost the economy but also generate formal jobs with fixed salaries and access to healthcare, according to data analyzed by REDES.
Persistent challenges and latent opportunities
Despite the reported good economic performance, structural challenges persist, such as the limited quality of education and the management of water resources, which are key to agriculture in the face of the risk of drought. Espinar emphasized the need for water infrastructure projects, such as reservoirs, to ensure long-term sustainability.
"Growth isn’t just a number: it’s a real tool to improve the lives of every Huánuco resident. If it’s driven by investment, job formalization, and strategic planning, the region can continue to advance," he concluded.
"When the economy improves, there are more opportunities for everyone. Jobs are created, incomes rise, and consumption is boosted, which encourages new investments," the specialist added.
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Espinar emphasized that economic growth has a direct impact on poverty reduction. He noted that between 2004 and 2013, Peru grew at an average rate of 6.4% and poverty decreased by almost 25 percentage points. In contrast, in the following decade, with lower growth, poverty reduction was limited. In Huánuco, where 39% of the population lives in poverty, the challenge is to ensure that economic development translates into tangible improvements for all.
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