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Peru poverty rate falls over 21 points in 2007-2018 on dynamic economy

14:40 | Lima, Apr. 12.

Peru's poverty rate fell more than 21 percentage points between 2007 and 2018, with an average GDP growth rate of over 5%, the Central Reserve Bank (BCR) reported on Friday.

"In effect, poverty has fallen from 21.7% (in 2017) to 20.5% (in 2018), according to INEI data. We think this is consistent with GDP growth of 4% in 2018," BCR Monetary Policy Manager Paul Castillo stated.

"If you put it in perspective, poverty has decreased at rates close to 40% from 2007 to present, and this occurred as the economy grew at average rates of more than 5%," he pointed out.

The BCR official believes poverty will continue to fall if Peruvian economy maintains its pace of expansion.

"Ideally, we would like to see higher growth rates, in such a way that poverty can be reduced at a faster rate," he added.

Economic activity

On the other hand, Castillo said non-primary economic activity indicators continue showing signs of dynamism, even though the output level remains below its potential.

"For instance, the electricity production indicator is believed to have grown 6.3% in March, higher than February (5.6%) and January (5.7%) rates," he explained.

According to INEI, the electricity sub-sector grew 5.63% in February this year, compared to the same month in 2018, thus posting growth for fourth month in a row.

(END) CNA/JJN/RMB/MVB

Published: 4/12/2019

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Peru poverty rate falls over 21 points in 2007-2018 on dynamic economy

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