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Peru swaps out economy minister in surprise move

Peru swaps out economy minister in surprise move

Straits Times13-05-2025
LIMA - Peruvian President Dina Boluarte on Tuesday shook up her cabinet, replacing the Andean nation's economy minister after just a few months and the day before her prime minister was to face a censure vote in Congress.
Economy Minister Jose Salardi, who assumed the post in January, was succeeded by Transportation Minister Raul Perez, who told journalists after being sworn in that he would meet with Salardi "to go over the agenda."
The reshuffle came a day before Prime Minister Gustavo Adrianzen was set to face a censure vote in Congress after calls for his resignation over rising crime and the recent kidnap and killing of 13 miners.
Boluarte did not provide a reason for replacing Salardi. Perez becomes her fourth economy minister since she took office in December 2022.
Business groups had warned Salardi, who boosted public project tenders and attracted investment, could be ejected.
"We expect continuity in economic policy with the new minister," Jorge Zapata, president of Peru's main private business association CONFIEP, said in an interview with local television station Canal N.
Luis Castilla, who served as economy minister more than 10 years ago, said analysts were concerned that the change could lead to increased public spending, putting fiscal targets at risk, especially as the government faces a credibility crisis.
Boluarte's popularity has dropped to historic lows, with a poll released this week putting it at 2%.
"There will be a push to spend more than what's sustainable," Castilla warned.
Boluarte on Tuesday also replaced her interior minister, Julio Diaz, whose stint as minister lasted less than two months. Carlos Malaver, who previously headed the ministry's anti-crime division, will take his place.
The change came less than a year before Peruvians go to the polls to elect a president and members of Congress.
Presidential reelection in the Andean country is prohibited by the constitution. REUTERS
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