Political outlook

31/07/2024

President Boluarte highlights infrastructure and mining in July 28 speech, but implementation of some initiatives raises concerns

This weekend, President Boluarte gave her July 28 address, in which she highlighted the push for Government-to-Government (G2G) agreements, the development of mining projects, the merger and creation of new ministries – including the Ministry of Infrastructure – and the confirmation of the increase in the minimum wage before the end of 2024.

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Martín Coronado

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.