Peru prepares for 'mega' El Nino with 5.2-bn dollar spending plan

Peruvian President Keiko Fujimori on Thursday announced a 5.2 billion dollars fiscal spending and investment package to combat the impacts of the El Niño weather phenomenon, high fuel prices, and global interest rates.

In addition, the Economy Minister announced that impacted businesses will receive liquidity support, credit/loan flexibilities, and tax payment deferrals. To fund the plan, the government is modifying fiscal rules to allow the 2027 fiscal deficit to rise to 2.4% of gross domestic product (GDP), up from the previous target of 1.4%.

Despite climate disruptions threatening northern rains, southern droughts, and Pacific fisheries, the administration projects 2027 economic growth to potentially exceed the previously forecast 3.4%.