Peru has shown a positive economic performance over the past 25 years regarding inflation, growth rates and poverty reduction, the Development Bank of Latin America (CAF) highlighted today.
Information is part of CAF's Economy and Development Report - RED 2016: "More Skills for Life and Work" to be presented on October 24.
Unlike human capital (measured by schooling years), skills for work and life are not only developed in educational institutions. Families, the environment and labor market are also crucial to building up skills.
Peru ranks better than its Latin American counterparts in various levels: education coverage, dropout rate, teenage pregnancy and level of youth not in employment, education or training (NEET). However, the Inca nation faces other challenges, such as youth employment informality, the Bank warned.
Peru leads growth
CAF Chief-Economist Pablo Sanguinetti affirmed Peru's growth rates were higher than the regional average over the past 25 years.
"Likewise, it [Peru] controlled inflation rates, consolidated its fiscal position, reduced poverty by close to 20% and expanded its middle class," he pointed out.
Nevertheless, the Inca nation needs to face challenges on education quality, workforce, as well as other human capital aspects necessary to bolster long-term development.
In this sense, the report will reveal challenges Peru must face with respect to improving education and reducing labor informality to further boost economic development.
"The context is highly favorable due to the country's youth potential: the dependency ratio is on the downtrend. This demographic dividend is not expected to end until 2038, 210 years more than the regional average," the CAF representative explained.