Peru’s Deficit Targets Collapse Under Spending Wave

2026-03-26 - 19:10

Key Points — Peru’s Congress approved pension and salary reforms that will add 12 billion soles ($3.45 billion) in annual spending — more than 1% of GDP — despite warnings from the fiscal watchdog and central bank — The fiscal council called the spending a “hemorrhage” and said meeting the 1.8% deficit target for 2026