In the first month of the year, successive crises have continued to drastically deteriorate the image and credibility of the Executive. The resignation of Prime Minister Mirtha Vásquez deepened the crisis within a Government that was already facing a series of challenges. Meanwhile, tensions continue to rise between the Executive and Legislative branches, in a Congress with a high level of fragmentation and weak alliances that respond to particular interests. However, the current correlation of forces in Congress would still seem to indicate that there is no coalition capable of obtaining the necessary votes to impeach President Castillo.
Going forward, the hasty resignation of the Prime Minister, Mirtha Vásquez, and the appointment of a new Cabinet headed by Congressman Héctor Valer (Perú Democrático), will seek to reconfigure the political alliances of the Government. Finally, on the whole, no substantial improvement is seen in the selection of new ministers, and due to the way in which they were appointed, it is likely that the contradictions and tensions within this Cabinet will quickly become evident.
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.
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.
