Peru Approves $2.8 Billion Surge for El Niño Defense

Half of the newly unlocked funding is earmarked for completing critical public works, while the remainder supports public sector payrolls, crime prevention, and flood mitigation. These resources are vital to protecting the nation’s agricultural and fishing sectors, which remain highly vulnerable to the anticipated deluge. The financial injection follows a 60-day state of emergency declared by Interim President Jose Balcazar across nearly 40% of the country’s districts.

President-elect Keiko Fujimori signaled that further emergency decrees may be necessary to accelerate preventative measures. The urgency is underscored by projections from Credicorp Capital Asset Management, which warns that El Niño could trigger losses of up to 16 billion soles—roughly $4.70 billion—between 2026 and 2027. Despite these environmental headwinds, the central bank recently upgraded the annual economic growth forecast to 3.4%, citing resilient domestic demand and private investment.