Peruvian Presidential Election Headed To High-Stakes June Run-Off As Castillo Outperforms
- Following the surprise first-round result in Peru’s April 11 general election, leftist Pedro Castillo will face either right-wing candidate Keiko Fujimori or Centre-right candidate Hernando de Soto in a June 6 presidential election run-off.
- However, the ongoing uncertainty and elevated risks to policy continuity will threaten investor sentiment ahead of the second round in June, particularly as Castillo's party has campaigned on leftist economic policies.
- Preliminary results indicate that the next Congress will remain highly fragmented. Castillo’s Perú Libre party will likely win the most seats, yet fall well short of a majority as 11 parties are expected to win representation in the 130-seat legislature.
(Source: Fitch Solutions)