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delayed Peruvian economy had a direct impact on at least 700,000 Peruvianswhose incomes have fallen and have now moved from the middle class to the vulnerable class, according to a recent report The World Bank.
According to an international organization, this condition was caused by high inflation which still exceeds 8%, and other negative conditions such as falling public investment, slow employment growth and others.
“Higher inflation and slower recovery labor market they would also affect the vulnerable and the middle class. Nearly 700,000 Peruvians would move from middle class to vulnerable, and another 700,000 would move from vulnerability to poverty.
Who is the vulnerable population?
The vulnerable earn on average S/24 to S/56; i.e. $6.85 to $14 per day. Although this condition does not mean “to be poor”, it exposes a person to a high probability of becoming one, refers to The World Bank.
On the other hand, the middle class, or those with little chance of being poor; although not rich, they are those whose income reaches $14 to $81 a day, or $56 to $320 a day.
According to the international organization, 31.8% of the population lives in households with an income below the poverty line ($6.85 per capita per day), and another 37.7% are in a vulnerable situation and are at risk of falling below this line.
Note that for Central Reserve Bankthe middle class plays a big role in economic growth.
“[…] The middle class plays a stabilizing role in society to the extent that it seeks to maintain social and political order. In addition, it is a source of entrepreneurs, since this is a class more prone to savings, capital accumulation and production risks. Finally, the middle class is the source of consumer power; an increase in the size of the middle class entails an increase in purchasing power, ”the publication says.
Source: RPP
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.