The Government’s main allies, Fuerza Popular and APP, leveraged the crisis triggered by the murder of 13 mine workers in Pataz to strengthen their influence over ministerial appointments.
So far this year, the economic recovery appears to have consolidated, with growth becoming more broad-based. Domestic demand has shown solid performance.
Much of the improvement is explained by the fishing sector, which grew by almost 45%, driven by a good first season, which runs from April to June, after it was canceled last year due to weather problems.
Thus, the economy is expected to grow by 2.8% in 2025 (similar to the January projection) and by 2.4% in 2026 (0.2 percentage points below the previous projection).
Congress's difficulty in finding consensus regarding the political reforms necessary to ensure institutionality, representation, and balance of powers would keep the risk of political crisis latent in the next five years. Likewise, the growing citizen discontent, which could not be satisfied by the poor electoral offer, will maintain uncertainty regarding the next elections.
It is not convenient for the political parties in Congress to further expand the present electoral offer, considering that most of them already have a significant part of their candidates affiliated with the party.
