Castillo Puts Pragmatism Over Ideology to Boost Peru’s Flagging Economy

Castillo Puts Pragmatism Over Ideology to Boost Peru’s Flagging Economy
Peruvian President Pedro Castillo attends a press conference at the Presidential Palace in Lima, Peru, Oct. 11, 2022 (AP photo by Martin Mejia).

On Oct. 11, Peru’s attorney general filed a criminal complaint against President Pedro Castillo centering on Castillo’s alleged corruption and influence-peddling activities. Castillo has already faced two impeachment attempts by Congress, and the latest charges could trigger a third.

Though the focus on Castillo’s political travails is understandable, they have overshadowed one of the more significant policy developments from his presidency so far: In early September, Castillo’s recently appointed minister of economy and finance, Kurt Burneo, introduced a stimulus package of 36 measures designed to promote flagging economic growth. The 18 that require congressional approval will be presented in small batches in a legislative process that has not yet started.

The package, Plan Impulso Peru, aims to create some 200,000 formal jobs and bring down inflation, which stood above 8 percent in September for the fifth consecutive month. It also seeks to boost private sector confidence amid growing headwinds to the economy stemming from the country’s recent political instability and a likely slowdown in global economic growth.

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