President Dina Boluarte’s government has survived only tenuously amid public discontent, recurring calls for her resignation and a hostile Congress. A dominant populist-conservative majority has sidelined the weakened executive, reshaping the balance of power. Independent judges and prosecutors have demonstrated resilience, while parts of business and civil society have sought to prevent further deterioration.
Despite some signs of resilience, core economic fundamentals have weakened. Rising debt and a widening fiscal deficit pose risks to medium-term stability. The growing influence of informal and illegal sectors, especially in mining, has reversed earlier regulatory efforts.
The period has seen a decisive break with the technocratic liberal consensus. Counter-reforms, conservative dominance and the increased influence of informal interests are accompanied by weak and unstable government. Factionalism and particularism undermine legislative effectiveness and deepen public distrust.
