Poverty in Peru

Poverty in Peru has rapidly declined since the start of the 21st century, as a result of prosperity from the international market, tourism, low inflation, greater economic opportunities, and neoliberal economic policy, at one of the fastest rates in South America. Poverty decreased from 58.7% in 2004 to 20.5% in 2018, or from 14.9 million people in poverty to fewer than 6.8 million people in 2018, with millions of Peruvians rising out of poverty according to the Instituto Nacional de Estadística e Informática (INEI).[1]

The colors represent the percent of the population in poverty: blue, less than 10%; green, 10–20%; yellow, 20–40%; orange, 40–60%; red, over 60%.

As of 2018, 20.5% of the population of Peru is at or below the poverty line, constituting around 6,765,000 people. Only 2.8% (~924,000 people) of the Peruvian population find themselves in extreme poverty. According to the INEI, extreme poverty is defined as individuals who earn less than US$80 per month (S./264 PEN), and the minimum living wage is defined as US$415 per month.

Poverty in Peru is especially present in underdeveloped and most inland regions of Peru, particularly Huancavelica and Cajamarca, as a result of little economic opportunity and availability of capital in those regions. Areas with a high development index, such as Lima, Moquegua and Ica, enjoy relatively low poverty as a result of economic opportunity.

Peru is one of the countries in the world that has seen the fastest reduction of poverty, partly due to sound economic policy and growth.[2]

Unemployment and social mobility

San Isidro, a district in Lima, is one of the economic sector powerhouses that boosts employment and curtails poverty in Lima.

Peru's National Institute of Informational Data (INEI) reported around 686,300 able Peruvians as unemployed.

Outskirts and economic slums of Lima, Peru, where most of poverty in Lima is concentrated

Poverty rate in Peru by region

Ranking	Region	2018
Total	Perú	20.5%
1	Madre de Dios	4.2%
2	Ica	8.1%
3	Moquegua	9.6%
4	Arequipa	11.7%
5	Lima	12.0%
6	Tacna	12.8%
7	Tumbes	13.0%
8	Ucayali	13.2%
9	Ancash	22.0%
10	San Martín	23.1%
11	Junín	24.5%
12	Cusco	25.0%
13	La Libertad	25.6%
14	Lambayeque	28.0%
15	Piura	34.9%
16	Pasco	37.5%
17	Puno	42.9%
18	Loreto	43.1%
19	Huánuco	44.9%
20	Amazonas	45.0%
21	Apurímac	51.2%
22	Ayacucho	51.5%
23	Cajamarca	53.5%
24	Huancavelica	54.5%
Source: Instituto Nacional de Estadística e Informática del Perú

Other dimensions of poverty

Basic access to utilities has relatively improved in Peru throughout since 2000, as seen through the percentage of the population lacking basic utilities declining.[3]

Percent of population without access to utilities

Year	Water	Basic Sanitation	Overcrowdedness
2007	28.0%	42.0%	12.3%
2008	27.6%	40.4%	11.6%
2009	25.9%	38.3%	11.0%
2010	23.8%	36.4%	9.6%
2011	23.2%	34.9%	9.6%
2012	17.7%	33.4%	8.9%
2013	16.9%	33.0%	8.3%
2014	14.3%	32.3%	7.6%
2015	14.2%	31.5%	7.4%
2016	12.0%	30.6%	7.3%
2017	12.0%	29.7%	7.0%
Source: INEI (2017)

References

1. "Perfil de la pobreza 2012, Perú" (PDF). INEI. Retrieved 2019-12-23.
2. "Poverty headcount ratio at national poverty lines (% of population) - Peru | Data". data.worldbank.org. Retrieved 2019-12-23.
3. "Evolución de la Pobreza monetaria 2007-2017 – Instituto Peruano de Economía" (in Spanish). Retrieved 2020-02-02.

• Perfil de la Pobreza 2012, Perú
• Pobreza por Departamentos 2010, Perú
• Pobreza por Distritos 2007, Perú

See also

• List of regions of Peru by population
• List of cities in Peru
• Peru