Political outlook
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.
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.
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.
Nearly six months into the change of government, the probability of president Boluarte completing her presidential term increases despite underlying risks.
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.
Over the course of this year, the bussiness environment has undergone three notable changes that are shaping its trajectory.
