In the last month, the political panorama has been marked by the beginning of the electoral race. The electoral schedule requires possible candidates who want to participate in the next electoral process to be affiliated with a political organization.
During the second quarter, GDP would have grown at a higher rate than during the first quarter, mainly due to the recovery of the primary sectors.
In the month of May, the Attorney General, Juan Carlos Villena, filed a constitutional complaint against President Dina Boluarte, for the alleged crime of improper passive bribery to the detriment of the State.
Those that were most affected by the protests and rains last summer, such as fishing, tourism, mining and public investment, have registered a clear rebound in their activity levels.
Although the implicit alliance between the Executive and the Legislative remains in force, in recent months we have seen a progressive weakening of the Executive.
During April, upward pressure and volatility in the prices of some commodities was high. There was a series of attacks between Israel and Iran, intensifying global fears that the war in the Middle East would escalate.
This month, the political outlook remained relatively stable despite a decrease in President Boluarte's approval rating. Inspite of her low popularity, the appointment of persons with technical profiles in some ministries, fatigue after almost three months of protests, and closer ties to the center-right in Congress have allowed the President to remain in office.
In 2024, a more favorable business environment is anticipated than the previous year. On the international front, despite the lower global momentum, commodity prices will have a relatively favorable evolution for the country.
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.
Six months into the administration, signs of an impending deterioration in the relationship between the Executive and Congress are starting to surface.
