Peru’s economy remains on tenterhooks in the face of Castillo’s plans

Castillo has coined the term "popular market economy", which proposes protectionist measures for agriculture and clothing, higher taxes for mining companies, and a "second agrarian reform" to improve working conditions in the countryside.

RIO DE JANEIRO, BRAZIL - After three decades of economic stability in Peru, the new government of the far-leftist Pedro Castillo (2021-2026) proposes a series of proposals that keep economic agents on alert due to the uncertainty about the future of investments and growth in the country.

In recent years, Peru's Gross Domestic Product (GDP) grew at an annual average rate of 4.8%, with inflation between 1 and 3%, a fiscal deficit of 1.6% of GDP in 2019, and international reserves equivalent to 36.7% of GDP in 2020.

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