Peru's Vizcarra Likely To Survive Impeachment, Though Instability Will Persist

• Fitch Solutions expects Peruvian President Martín Vizcarra to survive the ongoing impeachment effort launched by members of Congress on September 11 and remain in office.
• That said, congressional tensions with Vizcarra and his cabinet members will significantly limit policy formation through the end of the government’s term in July 2021. Fitch Solutions adjusted Peru’s score in its Short-Term Political Risk Index to 58.3 out of 100, from 59.4 previously, to reflect higher risks.
• Though it is not the core view, if Congress does remove Vizcarra from office, it would likely fuel public unrest and threaten longer-term policy continuity, weakening the country’s political institutions that have withstood a series of crises over the last four years.

(Source: Fitch Solutions)