Peru: Poverty rate to decline in 2018

00:00 | Lima, Jul. 26.

Economist and State-run Fiscal Council member Carolina Trivelli expects poverty reduction to occur this year, given that Peru's GDP growth rate is set to improve to 4%.

"Hopefully, growth will help us. The construction sector is experiencing a recovery, and if expansion remains at said levels, we will be able to reduce poverty this year once again," Trivelli said after participating in the presentation of the Social Performance Report prepared by BBVA Microfinance Foundation.

The Fiscal Council member explained poverty will see a reduction this year mostly explained by improved indicators in Lima —the city with the highest poverty rate in the nation last year.

"Lima's economic rebound will impact poverty as it was the city with the highest poverty level in 2017, above Coastal-El Niño-battered northern regions," she said.

Nevertheless, the official emphasized that while such reduction is important, Peru's challenge is to curb extreme poverty, which is the worst.

It is worth saying the 2017 National Household Survey (Enaho), conducted by the National Institute of Statistics and Informatics (INEI), revealed that the poverty rate rose one percentage point from 20.7% to 21.7% of the population.

This rise —which caused a reduction in monetary conditions of 375,000 Peruvians— was the first of the millennium.

A new reduction in 2018 would confirm the figure for 2017 was just a bump in the reduction line.

(END) RMB/MVB

Published: 7/26/2018

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Peru: Poverty rate to decline in 2018

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