In the first month of the year, successive crises have continued to drastically deteriorate the image and credibility of the Executive. The resignation of Prime Minister Mirtha Vásquez deepened the crisis within a Government that was already facing a series of challenges. Meanwhile, tensions continue to rise between the Executive and Legislative branches, in a Congress with a high level of fragmentation and weak alliances that respond to particular interests. However, the current correlation of forces in Congress would still seem to indicate that there is no coalition capable of obtaining the necessary votes to impeach President Castillo.
Going forward, the hasty resignation of the Prime Minister, Mirtha Vásquez, and the appointment of a new Cabinet headed by Congressman Héctor Valer (Perú Democrático), will seek to reconfigure the political alliances of the Government. Finally, on the whole, no substantial improvement is seen in the selection of new ministers, and due to the way in which they were appointed, it is likely that the contradictions and tensions within this Cabinet will quickly become evident.
During the 2Q2024, economic growth was driven by the rebound of primary sectors, such as traditional agriculture and fishing, and by higher public spending, supported by an estimated increase of 11% in public wages and 16% in public investment, adjusting for inflation.
During the month of August, attention was focused on the dynamics within Congress. In view of the election of the Board of Directors and the recomposition of the ordinary commissions, numerous movements were recorded in the benches.
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.
