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Inexperienced Castillo faces major challenges in Peru

Monday, June 21, 2021

Subject

A profile of Pedro Castillo.

Significance

Pedro Castillo has emerged as the unexpected winner of Peru’s 2021 presidential election. A schoolteacher far removed from the political establishment, his victory had led to concerns about what his presidency would look like and, indeed, whether it would last a full term. His challenge to the status quo has the political class deeply rattled.

Impacts

  • A Castillo government can be expected to increase company taxation, especially in the all-important mining sector.
  • Most businessmen will prefer to wait and see what his government will bring before seeking to subvert it.
  • If he moves far to the centre, Castillo will open up space for criticism on the left, not least from his own party.
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