Peru’s Troubles Go Well Beyond Castillo

By Andrea Moncada

The president isn’t helping, but taxes and social issues lead a longer list of challenges.

Peru’s economy was once dubbed a “miracle” by analysts who marveled at its stability despite years of political chaos. But now, it’s facing tough times. Despite a strong rebound in 2021 after the COVID-19 pandemic, Fitch Ratings has revised down its projections for GDP growth in 2022 from 2.5% to 2.3%. Similarly, the IMF has adjusted its projection from 3.3% to 2.8% and has announced that Colombia’s growth rate looks set to overtake Peru this year. Analysts have pointed to adverse global financial conditions, including high inflation and less demand from China, Peru’s main...

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