Peru to invest $1.6b to reactivate economy

Peru's economy minister pledged to launch an investment program of $1.6 billion to ramp up growth hampered by constant political crises.

Alex Contreras said his plan has 19 component parts and will generate 130,000 jobs and add an additional 1.2 percent to the nation's economic growth in the first half of 2023.

Contreras said his goal is for Peru's economy to grow 3.9 percent next year.

"We are prioritizing the regions most affected by conflict… It is a package of measures to strengthen household economies," he said. Political upheaval has roiled Peru in the last three weeks.

Then-president Pedro Castillo on December 7 sought to dissolve Congress and rule by decree, only to be ousted and thrown in jail. Castillo was replaced by his vice president, Dina Boluarte. But Boluarte has faced a wave of often violent demonstrations calling for Castillo to be returned to power. The unrest has caused 22 deaths and more than 600 injuries.

Earlier in December 2022, The United States has called for political reform in Peru in the wake of the removal of leftist president Pedro Castillo, as Pope Francis urged dialogue to overcome the crisis and violent protests that have left at least 19 people dead.

In a call to new president Dina Boluarte, US Secretary of State Antony Blinken encouraged her and other officials to "redouble their efforts to make needed reforms and safeguard democratic stability," department spokesman Ned Price said.

"The United States looks forward to working closely with President Boluarte on shared goals and values," Price said in a statement, adding that Blinken stressed the need for all Peruvian actors "to engage in constructive dialogue to ease political divisions and focus on reconciliation." Pope Francis also called for dialogue, saying: "Let us also pray for peace in Peru, that the violence in that country might cease and that the path of dialogue might be embarked upon to overcome the political and social crisis."

Earlier that month, Castillo was removed from office and detained after he tried to dissolve the legislature and announced he would rule by decree, amid several corruption probes targeting him.

He has been ordered to spend 18 months in pretrial detention. Boluarte, who had served as Castillo's vice president, rose to power, but she lacks the support the former president enjoyed in much of the country, and violent riots ensued.

Beyond the 19 deaths, more than 550 people have been injured, according to officials. Boluarte has resisted opposition demands to step down and has called for fresh elections, but lawmakers voted against a bill to move elections forward from 2026 to December 2023.