Andean Group - September 2026

On 20 August Luis Galarreta, Peru’s prime minister and vice president, presented the Política General de Gobierno 2026-2031, outlining the Keiko Fujimori administration’s priorities for its intended five years in office. The plan lists five key areas of focus: security; reducing vulnerability to natural disasters; promoting human development; increasing productivity and boosting formal employment; and consolidating democratic governability and the rule of law. Disaster preparedness is set to be the government’s initial priority amid fears of a particularly severe El Niño climate phenomenon in the coming months.

The plan was announced against a fairly positive economic backdrop. Figures released by the finance ministry on 23 August show that private investment increased by 17.6% in Q2 2026, compared to the previous quarter. This was the biggest increase since 2010, excluding the surge that followed the coronavirus (Covid-19) lockdown, and it reflected a 5.2% increase in domestic demand in Q2.

However, there are concerns that Peru’s economy could be knocked off track by this year’s Super El Niño. This explains the prominence given to disaster preparedness in Galarreta’s speech, and President Fujimori’s complaints that her short-lived predecessor, José María Balcázar, did not do enough to prepare for El Niño. On 11 August Fujimori formed a national commission for El Niño risk management, which includes the ministers of defence, finance, housing, and agriculture, as well as the head of the national water authority. The commission aims to accelerate the government’s response to threats, with Fujimori saying that her government would prioritise the response to 569 risks out of around 1,900 which have been identified. It will focus predominantly on the dredging of rivers and clearing of drainage ditches to reduce flooding.

Devastating recent earthquakes in Venezuela and Colombia have further highlighted Peru’s vulnerability to natural disasters. Galarreta said that the government is preparing a response plan based on the scenario of an extreme 8.8-magnitude earthquake in the capital Lima and the neighbouring port city of Callao. This will include plans for evacuation routes, emergency telecommunications networks, and backup systems for water and energy. A notable 6.7-magnitude earthquake hit the Ayacucho region on 20 August, the day of Galarreta’s speech, although the depth of the earthquake prevented extensive damage.

Boosting productivity

Beyond mitigating Peru’s vulnerability to natural disasters, Galarreta said that the government’s main economic focus would be on boosting productivity. He announced the formation of four presidential commissions to combat labour informality, develop financial markets, accelerate public investment, and reduce tax evasion, describing these as “four different fronts” in the quest for productivity growth. In particular, the government is looking to restart major infrastructure works on irrigation, road, and rail projects. By July 2027 the government has also pledged to have six electricity-generation projects underway, and it is planning to authorise 240 exploratory mining projects within the next year.

In terms of human development, a major focus will be on interventions for young children, with regional governments to receive PEN75m (US$22.3m) by the end of this year to invest in reducing infant anaemia. Investment is also promised to support the treatment of chronic illnesses in isolated areas, expand the availability of digital consultations, improve healthcare infrastructure, and make more medical appointments available across the country.