The Central Reserve Bank of Peru (BCRP) anticipated that monetary poverty, which reaches 29% of the Peruvian population, will be reduced towards the end of 2024 due to the growth of economic activity and the gradual fall in the rate of inflation.
Although he did not give an estimate of how much poverty could fall this year, the central manager of Economic Studies of the BCRP, Adrián Armas, pointed out that, in the last century, poverty in Peru fell from an initial 50% to almost 20% in 2019, one of the best progress in the region.
The decline in poverty in our country, he explained, is due to two factors: greater growth that generates adequate employment and allows citizens to escape poverty, and better collection that allows the State “to have more fiscal resources to allocate to expenses social”.
“This year, poverty would decrease, based on a recovery in economic activity, after a drop of 0.6% in 2023. In 2024, we expect growth of 3%, and also [se reduciría la pobreza] due to inflation, which is already in the target range and would remain at those levels,” Armas highlighted.
Armas assured that part of the increase in poverty that was recorded last year, as in 2022, was associated with the impact of inflation on food prices.
“In the consumption basket, for people with less income, food has greater weight. To the extent that this is corrected, it will contribute to reducing the level of poverty,” said the official.
“We estimate that poverty this year would decrease, and it is a projection that is based on a recovery in economic activity. This year we expect growth of 3% and inflation, which is already within the target range, will remain there,” he added. .
Source: Larepublica
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