Concessions will not appease protester demands in Peru

Significance

Congress has passed a bill paving the way to early elections, but not at the speed demanded by protesters. President Dina Boluarte walks a fine line in responding to popular demands while maintaining cooperative relations with far-right parties in Congress.

Impacts

• The protests will further limit growth this year and stoke inflation through temporary shortages.
• The Boluarte government will broadly follow business-friendly economic policies.
• The hiatus in relations with Mexico is likely to be temporary.