Last month, we identified four pieces of good news for the business environment: (i) lower prices of certain imported goods, (ii) lower political risk, (iii) improved business confidence, and (iv) some stabilization in local financial variables.
Six months into the administration, signs of an impending deterioration in the relationship between the Executive and Congress are starting to surface.
After a challenging start of the year, characterized by social conflicts and heavy rains, the Peruvian economy has begun to show signs of recovery, albeit at a slow pace.
Nearly six months into the change of government, the probability of president Boluarte completing her presidential term increases despite underlying risks.
This month, the political outlook remained relatively stable despite a decrease in President Boluarte's approval rating. Inspite of her low popularity, the appointment of persons with technical profiles in some ministries, fatigue after almost three months of protests, and closer ties to the center-right in Congress have allowed the President to remain in office.
Over the course of this year, the bussiness environment has undergone three notable changes that are shaping its trajectory.
During February, there was a decrease in the number of protests at the national level, as well as a focus on demonstrations in the south of the country, particularly in Puno.
Enero estuvo marcado por la intensificación de la violencia a nivel nacional, especialmente en el sur del país. La diversidad de actores y de intereses ha dificultado que el Gobierno logre identificar interlocutores válidos para entablar el diálogo; además, en el Congreso no se han alcanzado consensos para aprobar el adelanto de elecciones y con ello establecer una salida a la crisis política.
January was marked by social upheaval and intensification of violence at a national level, especially in the south of the country. Thediversity of actors has hindered the government from identifying valid spokespersons to enter into conversation and negotiate with and, to date, havenotmanaged to calm down the exacerbated state of affairs.
During 2023, economic growth will be sustained by mining production (due to the first complete year of commercial operations of Quellaveco) and the pending recovery of services most affected by the pandemic.
