OECD Urges Economic Reforms to Combat Peru's Political Instability
Peru must implement economic reforms to counteract political instability expected to intensify before the 2026 elections, according to the OECD. Recommendations include boosting workforce skills, enhancing fiscal discipline, and investing in infrastructure, as the country grapples with intermittent protests and low presidential approval ratings.
- Country:
- Peru
The Organisation for Economic Co-operation and Development (OECD) has called on Peru to adopt economic reforms in anticipation of increased political instability ahead of the 2026 general elections. The OECD's recent report highlights the need for Peru to fortify its economic foundations amid existing political challenges and social protests.
OECD Secretary-General Mathias Cormann stated that Peru could achieve long-term growth by improving workforce skills, increasing access to finance for small businesses, encouraging formal employment, and accelerating climate adaptation. Despite solid macroeconomic fundamentals, the report emphasized the need for fiscal discipline and further reforms to regain investor confidence.
With GDP growth projected at 2.8% for this year and 2.6% in 2026, below the government's expectations, the OECD stressed the importance of investing in infrastructure, education, and maintaining strong public finances. The organization also noted that deep political fragmentation could hinder reaching a consensus necessary for sustainable growth as the country approaches its upcoming elections.
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