LIMA, April 13 (NNN-ANDINA) — Peru’s poverty rate fell more than 21 percentage points between 2007 and 2018, with an average GDP growth rate of over 5%, the Central Reserve Bank (BCR) reported on Friday.
“In effect, poverty has fallen from 21.7% (in 2017) to 20.5% (in 2018), according to INEI data. We think this is consistent with GDP growth of 4% in 2018,” BCR Monetary Policy Manager Paul Castillo stated.
“If you put it in perspective, poverty has decreased at rates close to 40% from 2007 to present, and this occurred as the economy grew at average rates of more than 5%,” he pointed out.
The BCR official believes poverty will continue to fall if Peruvian economy maintains its pace of expansion.
“Ideally, we would like to see higher growth rates, in such a way that poverty can be reduced at a faster rate,” he added.
On the other hand, Castillo said non-primary economic activity indicators continue showing signs of dynamism, even though the output level remains below its potential.
“For instance, the electricity production indicator is believed to have grown 6.3% in March, higher than February (5.6%) and January (5.7%) rates,” he explained.
According to INEI, the electricity sub-sector grew 5.63% in February this year, compared to the same month in 2018, thus posting growth for fourth month in a row. — NNN-ANDINA
