Fynsa
The upcoming election in Peru will mark a regional milestone due to its extreme fragmentation. Voters will choose among 35 presidential tickets, an unprecedented number that reflects a deep crisis of representation. This situation follows a decade of turmoil during which the country has had eight presidents, highlighting a troubling institutional fragility within the executive branch in the face of a highly fragmented legislature.
Despite this complex political landscape, Peru exhibits a duality that surprises international markets. While approval ratings for political institutions have fallen to historic lows (3% for the executive branch and 5% for Congress), the country’s economic fundamentals remain stable.
By the end of 2025, Net International Reserves (NIR) had reached a historic high equivalent to 28% of GDP, establishing themselves as the strongest financial buffer among the region’s major economies. In monetary terms, this amounts to approximately US$74 billion, a figure that provides a level of exchange rate and monetary predictability unmatched in Latin America.
The main economic risk lies not in a lack of resources, but in the difficulty of building consensus. In the last election (2021), the candidates who advanced to the runoff round garnered barely one-third of the valid votes, leaving two-thirds of the population without direct representation in the runoff. By 2026, with 35 parties in the race, the risk of a fragmented Congress—where coalitions are fleeting and centered on individual figures—could hinder the implementation of structural reforms needed to boost potential growth.
The Peruvian economy has proven to be “bulletproof” in the face of political turmoil thanks to the autonomy of institutions such as the BCRP. However, the challenge for the next five years will be to translate that macroeconomic strength into tangible social well-being, bridging the gap between the technical efficiency of its financial institutions and the fragility of its political system.
