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Political outlook


An Executive that’s more and more vulnerable, but surviving

This month has been marked by key milestones which are making the Government’s position more vulnerable, only eleven months into term. Among these, the fragmentation of the leading party’s Members of Congress, which is weakening the President’s capacity for negotiation in Congress, and the progress in the investigations by the Public Prosecutor into the president and his circle.  

Another important milestone is the approval of the ruling to return to bicameralism and congressional reelection, which has a high probability of getting approved at the Plenary, since it was supported by a majority in the Constitution Committee. Its approval could generate incentives in a sector of Congress to favor a scenario of interruption to the president’s mandate, whether through early elections or impeachment.

Moving forward, the election of the Congressional Steering Committee will be key for scenarios in the medium term. The election of someone to convene and reconcile could give Congress new momentum, as well as refresh its image which is currently worse than that of the Government.

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Camila Bozzo

Head of Political Analysis


Improvement trends consolidate and new risks emerge on the horizon

Last month, we identified four pieces of good news for the business environment: (i) lower prices of certain imported goods, (ii) lower political risk, (iii) improved business confidence, and (iv) some stabilization in local financial variables. 

The honeymoon period ends, but the government remains relatively stable

Six months into the administration, signs of an impending deterioration in the relationship between the Executive and Congress are starting to surface.

Four positive developments in the business environment

After a challenging start of the year, characterized by social conflicts and heavy rains, the Peruvian economy has begun to show signs of recovery, albeit at a slow pace.

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