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Political outlook

14/11/2024

New protests add uncertainty to a government with limited room for action

Yesterday, various social organizations and transport unions resumed protests scheduled for November 13, 14, and 15, related to the increase in insecurity and extortion in the country.

These demonstrations coincide with the Asia-Pacific Economic Cooperation Forum (APEC) Leaders’ Summit, organized by the Peruvian government, which will host 21 economies that represent almost two-thirds of the world’s GDP and half of global trade. Among the most important leaders who will attend are Chinese President Xi Jinping and US President Joe Biden.

The Government’s response to these new protests has been questionable, especially due to the improvised decision to cancel in-person classes in Metropolitan Lima, Callao, and Huaral in the previous days.

If you wish to access the full report, write to us at: contactaSAE@apoyoconsultoria.com

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.

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