LatinNews Daily - 07 November 2025

*Peru’s economy and finance ministry has announced austerity measures aimed at saving PEN1.2bn (US$355.4m) in the current fiscal year, in order to comply with the country’s fiscal rule which permits a maximum spending deficit of 2.2% of GDP. Economy and Finance Minister Denisse Miralles said that “austerity is not a goal in itself, but a tool to protect the country’s economic stability and guarantee that every sol spent by the State is used efficiently and transparently”. She added that “these measures are needed to meet the fiscal target and maintain confidence in the Peruvian economy”. A government decree issued yesterday announced several measures designed to rein in spending, including establishing a seven-day window for financial transactions to be approved; reducing spending on non-essential goods and services such as publicity, events, and consulting; and prioritising investments and public works initiatives that are already underway. Savings from the cuts will be put into a ‘contingency reserve’ aimed at enabling the government to respond to emergencies without compromising fiscal stability.

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