Peru’s Poverty Rate Rises Again, Reaching 29% in 2023
In a concerning trend, Peru’s poverty rate has increased once again, reaching 29% in 2023, according to official data released on Thursday. This marks the second consecutive annual increase and comes as the country grapples with ongoing political turmoil and economic challenges.
The Andean country’s statistics institute reported that 29% of the population is now classified as impoverished, with rural villages and towns being disproportionately affected. This figure is up 1.5% from the previous year and is approaching the decade-high of 30.1% recorded in 2020 during the height of the COVID-19 pandemic.
The report from the INEI statistics agency revealed that an additional 596,000 people fell below the poverty line last year, bringing the total number of people living in poverty to approximately 9.8 million out of Peru’s population of around 35 million.
Poverty rates were found to be around 26% in cities, while in rural areas, they soared to as high as 40%. In some regions, particularly in the Andean areas, over 80% of the population lacks access to basic necessities such as water, electricity, and internet services.
Extreme poverty, defined as a monthly income of less than 251 soles ($68), also saw an increase last year, affecting 5.7% of the population or 1.9 million people.
Peru, known as a top global copper producer, entered a recession in 2023, with the economy contracting by 0.6%. This marked the country’s worst economic performance since the end of the last century, excluding the impact of the pandemic.
The rising poverty rates highlight the urgent need for government intervention and support to address the economic challenges facing Peru’s most vulnerable populations.