José Arista, president of the MEF, affirms that the economy must grow at a rate of 6% to escape poverty.

Despite the austerity measures, MEF’s Jose Arista points out that it will fail to meet its fiscal target for 2024. – Composition Credit Infobae/Edwin Montesinos/Andina/MEF

Peru’s Minister of Economy and Finance, Jose Aristamaintained that Economic development Not enough to combat the projected 3% by 2024 money poverty, According to the latest figures from the National Institute of Statistics and Information (Here) affecting 29% of the country’s population.

in session Budget and Public Accounts Commission of the RepublicThe Chairman of MEF emphasized the need to achieve growth rates of up to 6% to achieve real impact on people’s well-being.

“For every point of increase in GDP, poverty is reduced by 0.7%. That is why our stubborn commitment to provide well-being to the population and the country through growth, 2% or 3% is not urgent, we must grow at a rate of 5% or 6%. That is the great challenge for all Peruvians. There is,” said Arista.

In sectors such as the extractive industry, especially in areas where copper prices have reached historic highs, the challenge is to grow the economy at a faster pace, he stressed. According to the head of the MEF, only 10% of the land allocated for mining exploitation is currently in use, although the country ranks among the top 10 in the world in the production of many important minerals.

Jose Arista presented himself to the Congressional Budget Committee.

“We can get it. Of the total concession area in Peru, only 10% is under exploitation, and if you look at the mineral ranking that appears in the top 10 in the country, there are four or five commodities, among them copper,” Arista noted.

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its owner MEF He gave an example of the case of Apurimac, he described as the richest in the country, square meter for square meter, with enough mineral reserves for the next hundred years. He also highlighted the opportunities at the coast to create jobs by other sectors such as agriculture and technology.

“Apurimak is the richest sector in the country, square meter for square meter, we have had reserves for a hundred years. Arequipa and Cusco, the same. We have a bright future with mining, agriculture, technology, ports, exclusive economic zones (EEZ) on the coast. They are employment magnets,” he highlighted.

Cash poverty A fact—not seen for two decades—has now risen to 29%. that is, Three out of every 10 Peruvians are poor Because their income does not exceed S/446 per month. Another extreme fact is seen in the increase in extreme poverty, which has increased to 5.7%, which is higher than the levels. International distribution. That means nearly two million Peruvians live on less than S/251 per month. Basic food basket.

published results National Institute of Statistics and Information (INEI) They respond to a number of factors such as the impact of inflation, the downturn in the economy and private investment.

As INEI revealed in its annual report, poverty has risen to 29% across Peru. – Infobae/INEI/Diffusion Composition Credit

In 2023, the decline in production across the country was -0.6%. That is, instead of growing, we fell. was A year of recession, the most pronounced in nearly three decades. Among the fields that recorded the most compression were: Fishing (-19,75%) Y Construction (-7,86%).

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As stated therein World Bank, 85% of poverty reduction between 2004 and 2019 is explained by economic growth.

Private investment is one of the main drivers of economic growth and job creation. This indicator fell by 7.3% in 2023 due to low business expectations (pessimism) of pessimistic economy for 33 consecutive months.

He Here The poverty line is the monetary equivalent of the price of a basic food and non-food consumption basket, which by 2023, Raised to S/446 per month per person. For a family of four members, an amount of S/1,784 applies. What does this mean? A Peruvian earning below that would be considered poor.

With a confirmed poverty increase in 2023 (29%), excluding the epidemic period, Peru has gone back 13 years in the fight against this scourge. In 2010, poverty among Peruvians reached 30.8%.

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