Peru Election: President Pedro Castillo faces divided nation after tense poll bottle

Pedro Castillo has finally won a long and tense presidential election. He has a challenge now to mend the wounds of a nation that is divided between support for his socialist reforms and fears that he will upend the Andean nation's traditional politics and mining.

Castillo is the former teacher and son of peasant farmers is set to enter office on July 28, he has received a lot of support from impoverished rural Peruvians who are fed up with the political status quo, which has resulted in increased poverty and inequality. Peru's political and corporate elites have been rocked by his ascension, terrified of his promises to rewrite the constitution and capture a much larger share of mining revenues from the world's second-largest copper producer.

Castillo's ministers will come from various political backgrounds

After Pedro Castillo's election victory was certified on Monday, Danny Castillo, an unrelated supporter of the leftist candidate, said, that the constitutional change is coming for Peruvians and there will be no more poverty, Peru will rise. After a turbulent election campaign, the president-elect, who is known for his wide-brimmed hat, has called for a truce with Fujimori and hinted that his ministers will come from a variety of political backgrounds.

Peru is in a period of uncertainty says Fitch Ratings

Fitch Ratings said on Tuesday that Peru is in for a period of uncertainty because Castillo has yet to specify key policy priorities, and the pandemic's impact is likely to boost state spending and raise debt levels in the short term. Castillo's administration's management of important sectors like as mining, gas, and communications, its attitude toward private contracts, and its fiscal policy settings would all affect Peru's sovereign rating, which is now rated BBB+ with a negative outlook.

In November of last year, Peru suffered one of the biggest political crises in its history, with three heads of state in a week following a conflict between the government and Congress, as well as violent protests that left two people dead. 

Out of the 130 members of the unicameral parliament, 37 will be from Castillo's party. Fujimori's Popular Force party will be the second-largest bloc with 24 seats.