Votes due this week by Peru’s congress on whether to impeach the president and to censure (remove) the finance minister will likely be close calls and could leave a power vacuum. That said, history suggests that the near-term economic and financial market impact will be limited. And if anything, an opposition takeover of the government may result in looser fiscal policy which would be a positive for the economic recovery over the coming years. In this Update we answer four key questions on the political situation.
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