In 2026, the Peruvian economy will grow by 3.2%, a pace similar to that of 2025, despite electoral risks
In the third quarter of 2025, the economy grew by 2.5%, a slower pace than that observed in the first months of the year.
The political environment in February was marked by the revelation of alleged cases of corruption in the presidential circle and by the swearing in of two Cabinets in less than two weeks. Last weekend, the lobbyist Karelim López, used the legal mechanism of substantial assistance in exchange for a sentence reduction and declared that there is a criminal organization operating within the Ministry of Transport and Communications, directly involving President Castillo.
This situation has reinforced a series of acts of political control from Congress. Among these, the pressure for Juan Fransciso Silva (Minister of Transport and Communications) to step down; furthermore, the accusation of President Castillo for treason and constitutional infringement. It’s likely that this dynamic of interpellations and censure motions will continue in weeks to come.
This is the context within which the Torres Cabinet will present itself on March 8 before the Plenary of the Congress for the investiture vote. Despite the technical and moral questions concerning the composition of the Cabinet, the investiture vote is expected to win, in order to avoid the constitutional dissolution of Congress. Tensions between the Executive and the Legislative are expected to stay high.
In the face of alleged cases of corruption, the risk of a crisis of governance remains small in the short term. Although the legitimacy of a presidential impeachment currently promoted by the opposition is growing, there are currently not the 87 votes necessary to remove Castillo from his position. In consequence, it is expected that a scenario of prolonged mediocrity will persist, predominated by deterioration, scandals and erratic decisions.
In the third quarter of 2025, the economy grew by 2.5%, a slower pace than that observed in the first months of the year.
This month, President Dina Boluarte’s cabinet demonstrated resilience in the face of criticism over leaked audio recordings implicating Ministers Eduardo Arana (PCM) and Juan José Santiváñez (Interior).
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.
