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Political outlook

02/07/2024

Congress continues to promote initiatives in the face of a weakened Executive

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. Faced with a government with less and less power to exercise a counterweight, Congress has been gaining ground. This has been reflected in the approval of anti-technical regulations without a counterweight from the Executive. On the one hand, there has been an increase in the approval of initiatives that seek to increase public spending and, on the other, of populist initiatives.

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María Alejandra Gutierrez

Senior analyst

OUR PERSPECTIVE

Peru's economic growth was dynamic in Q1 2025, although international environment risks have intensified.

The economy maintained a solid growth pace in Q1 2025, around 3.8%, slightly above expectations. Primary sectors, such as agro-exports and fishing, continued to rebound, although they were still affected by weather conditions in Q1 2024.

Political pressure on the government intensifies with the censure of Santivañez and new episodes of protest.

This month, the political agenda has once again focused on citizen insecurity. The death of a singer from a well-known musical group, allegedly at the hands of extortionists, sparked renewed criticism of the Minister of the Interior, who was censured by Congress, which in turn triggered new protests.

Resumption of Congressional Functions: Oversight, Electoral Reforms, and Key Projects on the Short-Term Agenda

Despite growing criticism, President Dina Boluarte remains reluctant to remove him from office, as Santivañez plays a key role in her efforts to obstruct investigations against her and her inner circle, including her brother Nicanor Boluarte.

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