IDB sees Peru poverty below 20 percent on growth, social programs

Peru can lower the poverty rate to less tan 20 percent over the next five years, according to the Inter-American Development Bank, IDB. 

The bank’s representative in Peru, Fidel Jaramillo, said this would require that Peru maintain a high rate of economic growth.

Peru’s gross domestic product expanded by 8.8 percent last year, but has slowed down in the first six months of this year largely due to uncertainity related to the presidential election.

After rising by 5.3 percent in June, many economists project Peru’s GDP to expand by about 6.5 percent this year.

Jaramillo said two additional points necessary for Peru to decrease the poverty rate, which is curently at 31.3 percent, will be to strengthen social programs and improve the use of public funds.

President Ollanta Humala has said that the implementation of social programs is one of his government’s priorities to decrease poverty and increase inclusion for those that have yet to benefit from Peru’s economic growth.

“Another important coordination is between the social programs and access to basic services such as water, sewage, rural electricity and rural roads that boost social programs,” Jaramillo said.

The Mesa de Concertacion de Lucha contra la Pobreza, or MCLCP, said last month that it believes Peru’s poverty could decrease to 17 percent if the country maintains an annual growth rate of 6.5 percent over the next five years.

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