Peru's new government confronts El Niño climate emergency and tight fiscal space

Peru's incoming administration, taking office on 28 July, will face its first 90 days during the rainy season when the El Niño phenomenon heightens flood, drought and health risks. Climate experts such as Marian Buraschi of Libélula stress that the government must quickly produce a climate‑risk map for critical infrastructure, secure food and medicine reserves, and protect water, energy and agricultural systems.

Economist Luis Miguel Castilla, former economy minister, warned that the El Niño emergency will consume much of the fiscal margin for the new cabinet. He noted that a supplemental credit of nearly S/10 billion further shrinks space for fiscal consolidation, urging concrete measures to maintain public‑finance discipline while responding to climate threats.