Poverty in Peru hovers around 21 percent, however, officials are hoping to mitigate this issue by 2021.
Though poverty rates remain high, social programs should lift the country’s economy and lower poverty around the country by 2021, Minister of Economy and Finance Carlos Oliva said Wednesday.
"It is expected to reduce poverty from 21% to 18% for the next three years," said Oliva who is attending the XVI Road Show in London, England, as a means to promote business endeavors and investment in Peru.
The South American nation maintained a steady rate of five percent economic growth, although- due to various initiatives implemented to address the growing poverty rate, this year’s expected economic growth hovers around four percent.
Around 400,000 struggling Peruvians succumbed to poverty in 2017, registering an increase rate of poverty of 1.7 percent nation-wide, RPP reports. Between 2016 and 2018, employment rates were also negatively affected, dropping from 28 percent to 27 percent.
Armando Mendoza, researcher at Oxfam in Peru and author of study, said, "Our country is still very far from the standards of the developed countries in protection and social welfare. Our levels of spending on health and education as a percentage of GDP are below not only the average of the Organization for Economic Cooperation countries, but are even below the Latin American average.”
However, numerous initiatives were implemented in 2017 to address these issues and the beneficial results should be illustrated in the pending 2018 report, said the Peruvian Institute of Economics (IPE).
"It is a little complicated to predict a reduction, but it is most likely that the figures from the National Household Survey (Enaho), which will be published in a few months, show a very moderate drop in poverty," said IPE General Manager Diego Macera.
Minister of Development and Social Inclusion Liliana La Rosa told Peru’s National News Agency, Andina, “Poverty was reduced not only by the growth momentum but also by social programs, which we are adjusting with the reforms.”.
Still, the one percent shouldn’t hamper future opportunities with companies abroad, Rosa assured.
Oliva told Andina reporters, "Peru maintains stable indicators, a strong institutional framework and economic growth that stands out among the countries of the region. We are sure that foreign investors will see Peru as a country where large investments can be made in various areas.”