Coastal El Niño phenomenon and economic slowdown were the main factors which led to poverty growth in Peru last year, former Economy and Finance Minister Alonso Segura affirmed Tuesday.
"I think there are two clear factors (which increased poverty in 2017). The main one is the abrupt slowdown (caused) by the big fiscal adjustment and other measures taken at the end of 2016," the economist expressed.
The National Institute of Statistics and Informatics (INEI) revealed monetary poverty affected 21.7% (6.906 million) of the Inca country's population in 2017. Previously, said rate stood at 20.7%.
"For the first time in 17 years, formal employment was reduced in Peru. Then it was foreseeable that something like this would happen, although it is regrettable," he stated.
Coastal El Niño
According to Segura, Coastal El Niño phenomenon
was the other element which had an impact on poverty
increase. Said weather event was characterized by heavy rains, landslides, and floods, which destroyed infrastructure and crops, leaving many citizens homeless.
"In this sense, we must be vigilant because if a person lost his/her house and does not have a job, he/she will remain in poverty in 2018. That's why we must see the effectiveness of the reconstruction efforts," he said.