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Significance

In selecting new members of his ministerial team, President Pedro Pablo Kuczynski has sought to appease the pro-Fujimori opposition in Congress without giving them a role in government. Whether or not a lasting rapport can be achieved will depend on the political skills of the new premier, Mercedes Araoz.

Impacts

The new cabinet will find it difficult to shake off the problems that afflicted its predecessor.

Growth this year and next is likely to be subdued.

Investment will only pick up if there is a sustained increase in commodity prices.

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