Peru’s election is a wrap. Leftist outsider Pedro Castillo has bested the right-wing longtime politician Keiko Fujimori in a polarized and bruising election. It was a nail-biter, and Castillo’s victory has yet to be officially certified. Fujimori has cried foul and is contesting the results. But it’s highly unlikely she can close the remaining vote gap with Castillo.
A Castillo presidency is an outcome no one predicted months ago and has rattled investors and the political establishment alike. Peru’s stock market has turned into a roller coaster that has dipped with the first and second round of presidential elections and Castillo’s economic policy claims. Its currency, the sol, has weakened considerably against the dollar. Former Peruvian presidential candidate and Nobel laureate Mario Vargas Llosa has warned Castillo “represents dictatorship and backwardness.” The question now is: Should they be so rattled? How exactly will Castillo govern?
