Peru: steady growth despite its political-judicial class
Peru's political drama continues, but so does its steady economic growth. Disrupted politics inhibits the sort of structural reform (improving ease of doing business, raising tax revenue, implementing government infrastructure projects faster) which could drive significantly higher long-term growth rates. But in the short and medium-term, commodity (e.g. copper and gold) output and prices (driven mainly by external, global factors) remain more important.
Prime Minister Villanueva submitted his resignation to President Vizcarra on 8 March. Peru's political system is a semi-presidential one where the president appoints the PM and the Cabinet from the members of the unicameral Congress (and where that Cabinet requires a vote of confidence in Congress). After taking office in March 2018, following the resignation of his predecessor, President Vizcarra has successfully associated himself with the anti-corruption campaign and the referendum to reform judicial appointments, political party funding and term limits for members of Congress, but his popularity has declined in recent months. The resignation of the PM follows:
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