Relative Political Stability To Persist After President Boluarte Impeachment Attempt

  • Fitch believes that Peru’s political crisis, set off by the impeachment of President Pedro Castillo in December 2022, is at an ebb, and they expect relative stability in the months ahead. 
  • After left-wing parties unsuccessfully attempted to impeach President Dina Boluarte on April 4, there is less political will for another impeachment attempt.
  • The impeachment vote was regarding Boluarte’s approval of harsher policing methods in response to mass protests, which followed the auto-coup of her predecessor Pedro Castillo.
  • Boluarte’s former left-wing allies wanted her impeached, as they accused her of betraying Pedro Castillo’s left-wing ideals, and being out of touch with working farmers from rural areas. Boluarte’s position was saved by right-wing members of Congress, who approved of harsher methods in dealing with protests.
  • Fitch has therefore revised Peru’s Short-Term Political Risk Index from 44.4 to 46.9 as social stability has improved in recent months, and Fitch does not see an imminent removal of another executive along with the fact that violent clashes between the government and protesters have been minimal since March.
  • That said, risks remain towards greater social instability. Boluarte is still being investigated on corruption charges, while both Boluarte and Congress remain unpopular and the public remains deeply unhappy with the ruling elites.

(Source: Fitch Solutions)