Overview

• Economists expect ministries and counterparties to pause project execution and contract signings, creating a short waiting period for public and private investment decisions.
• Moody’s indicates the near-term effect on Peru’s sovereign risk and economic functioning remains limited unless fiscal discipline is abandoned by the transition government.
• Markets could register a mild negative reaction in the coming days, though the recent appreciation of the sol is largely driven by external conditions and strong commodity prices.
• Peru’s economy has historically absorbed political turnover without immediate dislocation, yet persistent instability risks deterring long-term projects and infrastructure investment.
• Experts urge rapid clarity on an independent, technical finance minister to stabilize expectations and keep fiscal management on track.