García Extends Lead Over Flores; Markets Wobble

The markets in Peru took a dive yesterday, Tuesday, as it became increasingly clear that former president Alan García would be the most likely candidate to face nationalist Ollanta Humala in a second round of voting for Peru’s next president. With almost 85% of the votes counted, Humala had garnered 30.8%, García 24.7% and Flores 23.6%. Throughout the election campaign, market-friendly conservative Lourdes Flores had been the favorite to battle it out with Humala in a run-off but it looks as if García’s platform of spending succeeded in attracting a larger number of the country’s 25% of swing voters, in particular the younger voters who remember little of García’s previous period in charge. García was president of Peru between 1985 and 1990; by the time he left office, the country was suffering from hyperinflation and rebel insurgency. Interestingly, Flores was well ahead of her rivals in the votes cast abroad: she polled 62.2% against 8.5% for García and 8.0% for Humala.