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Political outlook

02/07/2024

Congress continues to promote initiatives in the face of a weakened Executive

Although the implicit alliance between the Executive and the Legislative remains in force, in recent months we have seen a progressive weakening of the Executive. Faced with a government with less and less power to exercise a counterweight, Congress has been gaining ground. This has been reflected in the approval of anti-technical regulations without a counterweight from the Executive. On the one hand, there has been an increase in the approval of initiatives that seek to increase public spending and, on the other, of populist initiatives.

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María Alejandra Gutierrez

Senior analyst

OUR PERSPECTIVE

Changes in the Cabinet have strengthened the alliance with Congress amid a context of growing institutional weakness.

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.

Economic growth likely remained steady at the beginning of Q2 and is becoming increasingly broad-based, despite the uncertain external environment.

So far this year, the economic recovery appears to have consolidated, with growth becoming more broad-based. Domestic demand has shown solid performance.

The serious deterioration in the conduct of economic policy in the United States would impact Peru's economic growth mainly in 2026.

In the first quarter of the year, economic growth remained solid (3.6%). This was the result of a combination of favorable dynamics for GDP.

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