LatinNews Daily - 28 April 2021

In brief: Deep business uncertainty in Peru ahead of election

* The business advisory service (SAE) of the Peruvian consultancy firm, Apoyo Consultoría, has published a survey of 300 of its client companies, which revealed low business investment confidence ahead of the 6 June presidential run-off election between Pedro Castillo of the far-left Perú Libre party and Keiko Fujimori of the right-wing Fuerza Popular party. The survey found that 75% of respondents are temporarily delaying their investments decisions ahead of the vote, compared with 25% which have not postponed investments and will not alter their investment plans no matter the result of the election. Of the companies that said they will delay investments, 4% had decided to indefinitely suspend investments, whilst 37% said they are likely to wait until after the election result. The survey results come as Castillo holds a strong lead over Fujimori, which SAE said was responsible for the business uncertainty. In the event of a Castillo victory, the survey found that 85% of business executives predict that the state will play a significantly larger role in the economy; 79% expect the central bank (BCRP) to lose some autonomy in order to finance public spending; 65% expect the dismantling of free trade agreements; and 60% consider it quite likely that companies in the mining, energy, or infrastructure sectors will be nationalised.

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