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Political outlook

02/06/2022

Recent appointments strengthen the balance of power, but some risks persist

Last month, new appointments were made in constitutionally and regulatory autonomous entities and in the Executive, favoring the balance of power. On the one hand, the election of the Constitutional Court judges and the appointment of the presidents of regulatory bodies show signs of stability, on the other hand, the appointments to the Cabinet send out ambiguous signals.

While the Minister of Transport and Communications and the Minister of Agriculture are being questioned, the appointment of the Minister of Energy and Mines constitutes an improvement of technical capacities and a reduction of the influence of cerronismo in the sector. Among her first actions, Minister Herrera replaced senior officials, strengthening the institutionality of the sector.

Despite the changes made to the Cabinet by the president, Congress decided to vote for a censure motion against the Minister of Labor, Betssy Chávez, and with 71 votes in favor, 28 against and 12 abstentions, the vote demonstrated the fractioning of the ruling party. In addition, it is expected that the new minister will maintain the continuity in the sector, in line with the words of Prime Minister Torres: “The Government will continue with the direction previously outlined.”

New points of view could alter the political outlook. These include the decision of the Attorney General, Pablo Sánchez, to investigate President Castillo for the case of Puente Tarata III. The information revealed in this investigation could put pressure on Congress to push for presidential impeachment or to bring forward the election. In addition, the approval of a constitutional infringement against Dina Boluarte could open new scenarios in the present phase of the process of transition.

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

Camila Bozzo

Head of Political Analysis

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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