Vacancy Controversy May Affect Short-Term Mining Investment

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It may affect other sectors of the economy as well.

Peru is currently world’s second-largest copper producer, but this may change if Pedro Pablo Kuczynski is pushed out of power by Congress, according to the industry’s association.

So far, a hypothetical vacancy would have short-term consequences and delay some important projects expected to be carried out during 2018. It is worth mentioning that 2018 is expected to be an excellent year for Peru’s economy and may open the door for many investors that want to come to Peru. Experts say that the consequences in the mid to long term remain to be seen.

Kuczynski will make one last attempt in Congress on Thursday to avoid his dismissal. Parliamentarians have accused PPK of lying about relations with Odebrecht, the Brazilian construction company that is the subject of an investigation into bribes paid across the continent. Former Peruvian presidents Ollanta Humala and Alejandro Toledo have also been accused of participating in the same corruption case.

The president says that he handed over control of the consulting firm and that he had no knowledge of relations with Odebrecht.

Mining companies have been some of the most affected in Peruvian actions market during the last week. For instance, shares of Cia. Minera Atacocha S.A dropped 14%, making this period one the poorest in recent time.

Do you think the vacancy will impact the economy in a big way? What kind of problems do you think can be derived from PPK leaving the presidential seat?

(Source)
(Cover Photo Flickr)

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Aris Sandrea

A native of Zulia, Venezuela. Aris joins linvinginperu after moving to Lima to work as a content creator. Bachelor’s degree in accountancy and 2 years of experience as a professional article writer and community manager. Watching movies and series, reading books and riding the bicycle is some of his preferred activities. Passionate about the idea of traveling the world to learn more about other cultures. Contact: aris.sandrea@gmail.com