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Political outlook

28/06/2022

Executive and Congress are holding their own amid the decrease in protests and the deadlock in the debate on early elections

During February, there was a decrease in the number of protests at the national level, as well as a focus on demonstrations in the south of the country, particularly in Puno. Despite the tense calm, new outbreaks of conflict are not ruled out in the coming months, due to latent citizen discontent and the lack of initiatives to solve the political crisis.

At this juncture, Congress does not seem to be in tune with citizens’ demands and failed to reach consensus on the call for early elections in the last legislative session.If the debate is resumed, Congress will have to approve the measure in the next two sessions (March to July and August to December 2023).

While the Executive remains stable and Congress seems to have no incentive to approve the call for early election, the likelihood of further protests and demonstrations remains. This is due to high levels of disapproval of both branches of government and the possibility of a new crisis.

To access the complete report contact us at: contactaSAE@apoyoconsultoria.com

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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