Peru’s Gross Domestic Product (GDP) will end 2024 above the 3.1% projected by the Government and the BCRP, according to the Minister of Economy and Finance, José Arista, and he does not rule out the possibility of setting an increase in the Minimum Vital Remuneration (RMV).
A few days ago, at the InPeru business forum, Arista Arbildo announced that we would reach a rate of 3.2%, but now he insisted that the variation “will be a few points more” —and no longer 10 basis points—.
“I think it is an issue that we have to look at (referring to the increase in the RMV). It is not ruled out definitively. The problems of the economy are multiple and we have to constantly analyze it to see if it is opportune and if it can be addressed,” mentioned TV Peru.
Arista explained that his counterpart in the Labor portfolio, Daniel Mauratewill call for some meetings “in the coming weeks or months” to analyze the matter —the space where it must be validated is the National Labor Council—.
And, after the enthusiasm of the head of the MEF following the GDP results for April and May – slightly above 5% – he assured that June “is also going well”, so he estimates a ratio of between 4.5% and 5%.
The increase in RMV cannot wait any longer
The last increase in the minimum wage was in April 2022: it went from S/95 to S/1,025. Since then, inflation has accumulated and the RMV has not kept pace, harming millions of families whose income did not allow them to meet all their needs or the basic basket, according to the former Minister of Economy, Pedro Francke.
“I think that the minimum wage should be readjusted further because it will help wage recovery to boost the domestic market,” he commented to La República.
Francke Ballvé questions the MEF’s optimism about GDP for this year, since it is only supported by the triple-digit rebound of fishing because the climatic anomalies have dissipated, and notes that if we look at non-primary industry – manufacturing, electricity and water, construction, trade and services – there are no auspicious changes.
Thus, the professor also considers that the willingness of Arista and Maurate to highlight the “benefits” of the numbers and a possible adjustment of the RMV, only serve to pave the way for President Dina Boluarte for her second message to the nation on July 28.
“A year ago he promised to raise the minimum wage and he didn’t do it. He should fulfill his promise before July 28,” he noted.
According to the BCRP, Peru’s RMV is the third lowest in Latin America: US$243 on average. We are just ahead of Argentina (US$145) and the Dominican Republic (US$243).
Source: Larepublica
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