Peru Reshuffles Cabinet Amid Recession

The government of Peru named four new ministers, including the head of Defense and the head of Economy and Finance, in the midst of a recession that the country has been in since 2023.

In addition to the changes in the Defense and Economy sectors, the cabinet will also have new faces in the Ministry of Energy and Mines and the Ministry of the Environment.

In Economy, Peruvian President Dina Boluarte swore in José Arista to replace Alex Contreras, while in Defense retired General Walter Astudillo took over in place of his counterpart Jorge Chávez, marred by a case of arms trafficking in the army.

In the Environment folders he appointed the biologist Juan Carlos Castro and in Energy and Mines the engineer Rómulo Mucho.

The four outgoing ministers have accompanied the president since the beginning of her government, in December 2022.

Sectors of parliament demanded Contreras' departure because for months, in 2023, he denied that the country would enter a recession.

The Peruvian economy was affected last year by unfavorable weather conditions due to the presence of the El Niño phenomenon, which ruined the agricultural harvest in 2023.

Peru entered recession in 2023, with growth forecasts below 0.9% in contrast to GDP expansion of 2.68% in 2022.

Despite the questions about his management, Contreras said goodbye to his position with an optimistic message.

The changes in the cabinet led by Prime Minister Alberto Otárola occur when the Peruvian president registers her highest disapproval in 14 months of administration, with 83% rejection and a level of 8% approval, according to the most recent Ipsos poll.