29% of the Peruvian population will be in poverty if the economy does not grow in the next five years

The poverty level in 2020 was recorded at 30%. Photo: IPE

The Central Reserve Bank (BCR) announced that Expectation of private investment is 0%., which may affect the progress of the Peruvian economy.

On the other hand, a study by Macoconsult revealed that Poverty will drop to 24% from 30% by 2020. But this statistical recovery does not mean that poverty will decrease on its own, since The level will remain higher than that recorded in pre-pandemic times. Adding a stagnant economy to the picture, this can become a very serious problem.

“What we were waiting for, before the political uncertainty, is for the economy to grow at a faster rate. We are now growing something like 2.5%, whereas before we had 4.5% [para el año 2022]. This is projection work [de pobreza] For the next year it remains constant. You’re in recession at 24%, whereas we were expecting that as of 2022, poverty starts declining at a slow rateAlvaro Monge, partner and general manager of the consulting firm, told Gestion.

If the worst possible economic scenario is taken, where there is zero growth of 0% until 2026 and inequality increases, Poverty will end up affecting 29% of the population.

However, the increase in inequality will not only occur due to the increase in poverty, but it will also occur due to budgetary problems. According to Monge, a stagnant economy will lead to the dismantling of some social policies, such as bonds, and may also lead to mismanagement of resources.

In addition, there will be an inflationary effect that will eventually affect those who have lower incomes.

in a better position, assuming that the economy grows 3.5% through 2026, Macroconsult predicts that levels Poverty is reduced to 17%, which will be a lower number than the number recorded in 2019.

Pedro Castillo appeared before the Organization of American States on Monday, September 20th.  |  Photo: Andean Agency
Pedro Castillo appeared before the Organization of American States on Monday, September 20th. | Photo: Andean Agency

American businessmen will travel to Peru to evaluate investments

On September 20, the President of the Republic, Pedro Castillo, announced that In the coming weeks, a group of American businessmen will arrive in Peru to encourage investment in different regions of the country. In order to revitalize the economy and end inequalities.

“We have agreed that they will continue to invest, without any kind of mistrust, without any fear and they will visit Peru. In the coming weeks we will meet them in Lima and we will travel to some areas, in order to stimulate investments and what is invested will be to reduce poverty and revitalize the economy”, pointed out.

He stated that during this meeting, doubts about the legal stability of investments were clarified. We were able to remove that ghost that was repeated, which was said during the campaign and which still recurs in some sectors of the population. We denied it.”, confirmed.

The President indicated that this visit was agreed upon during the meeting he held on Monday 20th with the American Chamber of Commerce (AMCham)., during his stay in Washington, D.C., as part of his first international agenda that he was developing in the United States.

We have met a group of entrepreneurs who are investing in the country recently. We talked and made things clear, saying that the state should always be on the side of the business community, we have always said that”he added.

The Peruvian president, who is on his way to New York City, where he will participate tomorrow in the General Assembly of the United Nations (UN), stressed that these investments will help “end inequalities such as lack of water, sanitation, education and roads and will allow a boost to agriculture.”

He said that the position of Peru tomorrow, during its speech to the UN General Assembly, will be to call for peace, tranquility and unity of peoples to improve the health conditions of citizens in a difficult context such as a health emergency due to the presence of COVID-19.

(with information from Andina)

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