The pandemic of COVID-19 raised the poverty figures in Peru due to the partial stoppage of the majority of economic activities. From that period to the present, considering the inflation of 2021 and 2022, the signs of an improvement to pre-pandemic levels are not the most encouraging.
The data from the latest report from the National Institute of Statistics and Informatics (INEI) reveal that the poverty monetary affected 25.9% of the population in 2021; that is, 4.2 percentage points less compared to 2020 (30.1%), but 5.7 percentage points more than in 2019 (20.2%). How to know when a person is considered poor or extremely poor in the Peru? We tell you here.
When is a person considered poor in Peru?
According to INEI, the line of poverty It is the monetary equivalent to the cost of a basic basket of food and non-food consumption, which amounts to S/378 per month per inhabitant; that is, a person considered poor has a monthly expense lower than this amount. For a family of four members, the cost of a basic consumption basket is S/1,512 per month.
When is a person considered extremely poor in Peru?
From a lower shore, the line of extreme poverty, which considers only the cost of a basic food basket, for the year 2021, it amounted to S/201 per month per person; that is, to consider a person as extremely poor, their monthly spending is not enough to cover the value of the basic basket of food consumption. For a family of four members it amounts to S/804 per month.
Evolution of poverty figures in Peru from 2012 to 2021. Photo: INEI
It should be noted that the official measurement of poverty in Peru is carried out through the indicator of spentbecause this variable is close to a quantification of the living standards of what people and households buy, acquire and consume, according to the INEI.
In 2021, the real average monthly expense per person was S/753, which means 6.1% compared to the level of spending in 2020, but 10.7% less than in 2019.
The National Household Survey (Enaho) revealed that, in 2021, extreme poverty reached 4.1% of the country’s population and decreased by 1 percentage point compared to 2020; while, when compared to the year 2019, it is higher by 1.2 percentage points.
World Bank estimates figures current of poverty in Peru
According to Tanja Goodwin, manager of the Equitable Growth of the world Bank, we are at a critical moment, in which people in the vulnerable range can descend into poverty in the face of any shock. A solution to reduce inequality, according to the economist, it is to collect more from those who generate and earn more in order to provide basic services to the country.
Although in May of this year, the INEI will announce the official poverty figures corresponding to 2022, the World Bank estimates that, at the end of the same, 31.8% of the Peruvian population is considered poor and that almost a million and a half of citizens live in this situation.
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
