Keiko Fujimori has officially named Elmer Cuba, a prominent pro-business economist and partner at Macroconsult, as Peru's new Minister of Economy and Finance (MEF). This appointment signals Fujimori's commitment to macroeconomic stability and investor confidence, with Cuba expected to prioritize policies that attract international markets and local investors. His selection is seen by analysts as a positive step due to his known stance on fiscal discipline, despite the challenge of balancing social spending demands with the need to reduce the deficit from the past year.
Cuba's immediate agenda for the MEF includes reactivating private sector confidence, unblocking mining and energy investments to boost fiscal revenue, and implementing targeted tax relief for micro and small businesses. He will also focus on consolidating the current economic recovery by accelerating public infrastructure projects. The international financial community will closely monitor his initial announcements regarding public debt management and maintaining the country's investment grade.
The new minister takes office in a context of economic recovery, with the Peruvian economy growing 3.58% up to April and the Central Reserve Bank of Peru (BCRP) projecting a 3.4% expansion for the close of 2026. Key indicators like a 19% increase in internal IGV collection between April and May, 38.1% growth in durable consumer goods imports, and an 11.3% rise in cement consumption point to strong private consumption, investment, and construction. However, Cuba's main challenge will be to elevate the economy's potential growth beyond the 3.5% ceiling it has struggled to surpass in recent years, which has limited poverty reduction and quality employment generation. To achieve this, specialists recommend increasing private investment, accelerating infrastructure project execution, and strengthening productivity.
