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Economy / Peru

Peru

August 2012 | Risk Summary

Peruvian President Ollanta Humala saw his left-leaning Gana Perú party retain leadership of congress in a July 26 vote. Victor Isla's 86-42 defeat of Fujimorista candidate Luisa Maria Cuculiza suggests continued support for the president in congress, despite the recent defections of some leftist lawmakers over the harsh government response to mining protests and social unrest. Still, given that Gana Perú holds only 47 of 130 seats in the legislature, and Humala's approval rating has fallen steeply in recent months, a further erosion of popular support could lead to more trouble for the coalition government.

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