Peru cabinet reshuffle will bring little policy change

Significance

Boluarte has reshuffled some key cabinet posts, including the portfolios of defence, economy and finance, and energy and mines. The main purpose of the changes is to shore up relations with right-wing groups in Congress on which she depends for her survival and to pre-empt possible votes of censure against ministers. Prime Minister Alberto Otarola remains in office, strengthened.

Impacts

• A moderate recovery in economic output is expected in 2024.
• Lack of state capacity will limit attempts to control criminality.
• The environment ministry is likely to play an increasingly subsidiary role in decision-making.
• New attempts may now be made to develop the controversial Tia Maria mining project.