Kuczynski will face conflictive Congress in Peru

Significance

His will be a government of competent centre-right technocrats, closely oriented towards business opinion. However, he lacks a majority in Congress which renders him beholden to the opposition Fuerza Popular (FP) party. A broad degree of continuity is likely in economic policy.

Impacts

• The business community will remain broadly supportive of the new government.
• In the event of an executive-legislative clash, Kuczynski would seek to appeal to public opinion over the heads of political parties.
• The leftist Frente Amplio will maintain a critical distance.
• Political calculations will increasingly be conditioned by the 2021 presidential elections.