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] In 2019 the poverty rate decreased with another 1,7%.^[2]

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.^[3]

However in 2020 Peru's poverty rate increased due to the COVID-19 pandemic.