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LATIN AMERICA ADVISOR

LATIN AMERICA ADVISOR

A daily publication Of the dialogue

July 28, 2026

What Is Peru’s Economic Outlook Under Fujimori?

Conservative Keiko Fujimori takes office today as Peru’s president. She was elected last month in her fourth attempt at the office. // File Photo: CarlosEduardoPA via Wikimedia Commons CC BY-SA 4.0.

Q

  • Keiko Fujimori takes office today as Peru’s president, nearly two weeks after Congress approved a 10 billion-sol ($2.8 billion) expansion to this year’s budget to finance infrastructure projects, essential public services and other spending priorities. The budget approval came after Peru’s central bank raised its 2026 economic growth forecast to 3.4 percent from 3.2 percent, citing strong domestic demand and private investment, even as the country faces fiscal pressures and the potential economic effects of an El Niño weather event. What does Congress’ approval of the additional 10 billion soles in spending signal about the space Fujimori will have to pursue her economic agenda? What changes in economic policy can be expected under her government? What risks would a harsh El Niño event pose to Peru’s economic outlook, public finances and inflation, and how well positioned is the new government to respond?

A

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The Inter-American Dialogue publishes the Latin America Advisor every business day for a distinguished membership of informed corporate leaders, scholars, and government officials invested in Latin America’s development and future. The Advisor‘s highly regarded Q&A section covers questions submitted by subscribers themselves. Commentators regularly include heads of state, business leaders, diplomats, economists, analysts, and thought leaders from around the world. Many of the world’s largest and fastest-growing companies subscribe to the Advisor. To subscribe, click here. For terms and conditions, click here. For more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.
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Diego Arria
Director,
Columbus Group

Merike Blofield
Professor of Political Science,
University of Hamburg

Devry Boughner Vorwerk
CEO,
DevryBV Sustainable Strategies

Joyce Chang
Global Head of Research,
J.P. Morgan

Marlene Fernández
Corporate Vice President for Gov’t Relations,
Arcos Dorados (McDonald’s)

Peter Hakim
President Emeritus,
Inter-American Dialogue

Donna Hrinak
Director,
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Jon E. Huenemann
Council Member,
GLG Inc.

James R. Jones
Chairman,
Monarch Global Strategies

Craig Kelly
Senior Director,
Int’l Gov’t Relations,
Exxon Mobil

Barbara Kotschwar
Professor of Political Economy,
Georgetown University

John Maisto
Director,
US Education Finance Group

Nicolas Mariscal
Chairman,
Grupo Marhnos

Thomas F. McLarty III
Chairman,
McLarty Associates

Beatrice Rangel
Director,
AMLA Consulting

Ernesto Revilla
Head of Latin American Economics, Citi

Gustavo Roosen
President,
IESA

Andrés Rozental
President, Rozental &
Asociados

Shelly Shetty
Managing Director,
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