President Dina Boluarte of Peru expressed optimism about the country’s economy during her Independence Day speech to Congress. Despite facing allegations of corruption and abuse of power, she projected higher-than-expected economic growth and announced plans to formally call for elections scheduled for 2026 by next April. Boluarte succeeded Pedro Castillo in late 2022 after his removal and arrest for attempting to dissolve Congress.
The Peruvian economy contracted by 0.6% in the previous year due to extreme weather conditions caused by the El Nino phenomenon and a decline in private investment. However, Boluarte anticipated a surge in economic growth beyond the 3.1% forecasted by the central bank for the current year. She attributed this positive performance to the country’s economic resilience and emphasized the government’s commitment to restoring its growth potential.
Investment in the Mining Sector
Boluarte’s administration has allocated significant funds to revitalize the mining industry following a 10% decline in sector investment last year. She unveiled plans to implement 17 infrastructure projects valued at $3.2 billion in the latter part of 2024 and proposed the establishment of a new infrastructure ministry to enhance investment opportunities. The relaunch of Grupo Mexico’s Tia Maria copper mine after a decade-long suspension due to environmental concerns was highlighted as a crucial initiative to reinvigorate mining investment.
Despite her efforts to stimulate economic growth, Boluarte is entangled in legal troubles, with prosecutors accusing her of bribery and illicit enrichment, as well as investigating her role in the fatalities during protests at the beginning of her term. The president has vehemently denied these accusations and defended the actions of security forces in response to the demonstrators’ violence. Boluarte’s approval ratings have plummeted, reaching an all-time low of 5% according to a report by La Republica in May. The right-wing majority in Congress, which supports her, also faces public disapproval with an approval rate of just 6%.
Amidst the political turmoil, Peru’s leftist factions have been vocal in demanding Boluarte’s resignation. The country has witnessed a revolving door of presidents since 2018, reflecting the instability and challenges faced by the government. Boluarte, however, remains resolute in her commitment to maintaining order, peace, and freedom during the upcoming electoral process in compliance with the constitutional mandate for general elections in April.
President Dina Boluarte’s administration in Peru grapples with multiple hurdles, ranging from economic recovery efforts to legal controversies and dwindling public support. The future political landscape of the country remains uncertain as the government navigates through a tumultuous period marked by challenges both internally and externally.