Is Peru's boom about to be derailed?

Peru’s medium-term growth prospects are amongst the best in the region. But in the near term there is a mounting risk of overheating and tighter fiscal policy is needed to cool demand. In this respect, the major risk posed by the emergence of Ollanta Humala in the Presidential election race is not that he will pursue a Chavez-style takeover of the commanding heights of the economy, but rather that lax fiscal policy will fuel a boom-bust cycle.