Peru: A Country Committed to Poverty Reduction and Shared Prosperity

http://www.worldbank.org/en/news/feature/2013/06/27/peru-comprometido-con-reducir-pobreza

When World Bank President Jim Yong Kim sets foot in Peru for his first stop in a 3-country visit, he will find a country in the big leagues of emerging economies, with sound levels of growth and its economic house in order.

Peru has made big strides in the fight against poverty in the past five years, thanks to positive economic indicators and sound fiscal policies. But the country still faces many challenges.

With growth estimated at around 6%, it is currently one of the most dynamic economies in Latin America, ranking eighth out of the 10 fastest growing economies in the world.

This bonanza, driven by a boom in primary materials has led to reductions in poverty from 50% half-way during the last decade to 26% in 2012. This translates to 7 million Peruvians who are no longer poor. But inequality persists. The poverty gap between the country’s rural and urban areas remains wide: 17% compared to 53%, particularly in the regions of Ayacucho, Cajamarca and Apurimac.