Andean Group - August 2026

For a nation reeling from years of economic decline, a collapsed state, deep-seated corruption, and political instability, the colossal twin earthquakes that hit Venezuela on 24 June were a damaging blow to hopes for a better life. We begin this August 2026 edition of the Latin American Regional Report: Andean Group by examining the impact of the disaster on Venezuela’s economic prospects and the country’s political situation.

We then turn our attention to Peru, where Keiko Fujimori took office on 28 July after narrowly winning the election with a promise to tackle the growth of organised crime. Her narrow defeats in three previous elections, in 2011, 2016, and 2021, were widely attributed to the polarising legacy of her late father, authoritarian former president Alberto Fujimori (1990-2000). This time around, rising concern about crime meant that enough voters were prepared to look past the human rights abuses and corruption that have long been associated with the Fujimori name in the public consciousness.

The following article zooms out for a look at the different trends in coca cultivation across the Andean region. The 2026 World Drug Report by the United Nations Office on Drugs and Crime (UNODC), published on 25 June, showed that coca cultivation expanded in two of the world’s three leading producers from 2023-2024. Colombia remains by far the leading source of coca, with cultivation reaching another all-time high in 2024. In percentage terms, Bolivia saw the largest increase, although coca cultivation remains significantly lower than in Colombia and Peru. A more positive picture is emerging in Peru, where coca harvesting has declined for the third consecutive year.

In Ecuador, the government has unveiled a new security plan for Daniel Noboa’s 2025-2029 presidential term, as the next article explores. The plan sets out a more holistic strategy than the hardline ‘Plan Fénix’ which Noboa announced on the campaign trail before he first took office in November 2023, which revolved around giving the military a far greater role in domestic security – a goal which has now been accomplished. A second article on Ecuador discusses concerns that the vital shrimp sector could be impacted by the El Niño climate phenomenon.

We wrap up this issue in Bolivia, where Economy and Finance Minister José Gabriel Espinoza has said that the country faces a GDP contraction of between 0.7% and 1% in 2026. This is largely a result of the mass protests and road blockades that took place over 53 days in May and June, which Espinoza said had knocked the government’s growth plan off track.