[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-108219-en":3,"doc-seo-108219-105":30,"detail-sidebar-cat-0-en-105":92},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":21,"is_downloadable":21,"audit_status":21,"page_count":22,"language":23,"language_code":24,"site_id":25,"html_lang":24,"table_of_contents":26,"faqs":27,"seo_title":13,"seo_description":14,"update_tm":28,"read_time":29},108219,962075006959,"Anda","https://ap-avatar.wpscdn.com/avatar/e0002397efbe92a78e?_k=1776741047341049297",8,"Research & Report","Poverty, Inequality and Household Welfare - Chapter 1 - Key messages","The chapter explains how Peru’s poverty, inequality, and household welfare evolved across the period before the COVID-19 crisis and throughout the crisis years. It highlights pro-poor economic growth that reduced monetary poverty prior to 2013, then shows how the pandemic reversed earlier gains through a contraction and rising poverty. The analysis covers monetary and nonmonetary dimensions, including access to and quality of basic services, and describes labor market weaknesses, urbanization of poverty, and policy priorities to restore growth and strengthen universal, adaptive social protection.","Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized  \nKEY  \nMESSAGES  \nPOVERTY, INEQUALITY  \nAND HOUSEHOLD WELFARE  \nPoverty, inequality and household welfare  3  \n• The two decades preceding the COVID-19 pandemic were characterized by unprecedented economic growth, followed by a significant slowdown starting in 2013. The economic expansion was pro-poor, which allowed significant progress in poverty reduction. Between 2004 and 2019, poverty in Peru dropped 38.5 percentage points, although most gains corresponded to the period between early 2000s and 2013.  \n• The COVID-19 shock erased a decade of progress, as the economy contracted by 11 percent and poverty increased by 10 percentage points. The losses evidenced the fragility of the previous social gains and call for course corrections aimed at recovering economic growth and shielding the social progress derived from this growth.  \n• This chapter analyzes the progress in monetary and nonmonetary dimensions of poverty, focusing on the two decades before the COVID-19 crisis and on the years of the crisis. Monetary poverty and inequality are characterized, as well as the access to, distribution, and quality of basic services. The chapter also delves into the Peruvian labor market, which is the main contributor to poverty reduction of the past decade, but also one of the biggest sources of the recent fragility of social gains.  \n• The analysis shows that poverty has become an urban phenomenon, particularly after the COVID crisis, with more than two-thirds of the poor living in urban centers. The urban poor have significantly lower levels of productive assets (human capital, financial capital, land) and access to services/markets than the nonpoor.  \n• Over the long-term, Peruvian households experienced a significant improvement in nonmonetary welfare indicators, such asthe official unsatisfied basic need (UBN) measure. There has also been considerable progress in access to services, particularly access to piped water and access to electricity, with access to sanitation lagging. However, despite the progress, access to a package of basic goods is low, uneven, and of low quality.  \n• Labor market outcomes – which in the past two decades contributed to 86 percent of the decline in poverty – face structural weaknesses, such as high informality and low productivity, in the effort to continue performing as a driver of poverty reduction.  \n• Moving forward, Peru needs to focus on policies to restore growth, such as incentivizing the scale-up of firms and prioritizing investments in high-growth-potential sectors. The country should also support Peruvian households in becoming more resilient to future shocks by designing more adaptative and universal social protection systems.  \n4  Poverty, inequality and household welfare  \n1.1. From the golden years to turbulent times: Progress in poverty and household welfare  \nPre-COVID Trends in monetary poverty, inequality, and the middle class  \nBefore the COVID-19 crisis, the Peruvian economy experienced two decades of unprecedented economic growth that doubled gross domestic product (GDP) per capita, though there was a significant slowdown starting in 2013. While the region averageda 3.6 percent real GDP growth rate between 2004 and 2021, Peru registered an average real GDP growth of 6.6 percent, and GDP per capita doubled to S/zzz17,012 (Figure 1, panel a) . The outstanding economic performance was explained by successful macrostructural reforms, support for monetary and fiscal policy, and favorable exogenous conditions due to the commodity price boom, which was coupled with significant net inflows of foreign direct investment (FDI) 1 The end of the commodity boom, the slowdown in China, and the decrease in private investment due to the absence of new large-scale mining projects caused a slowdown of the Peruvian economy starting in 2012. From 2013 to 2019, average real GDP growth was ","cbCaiscQMkxqnBbc","https://ap.wps.com/l/cbCaiscQMkxqnBbc","pdf",6918142,5,1,48,"English","en",105,"# Key messages\n## Pre-COVID trends in monetary poverty, inequality, and the middle class\n## From the golden years to turbulent times: Progress in poverty and household welfare","[{\"question\":\"How did Peru’s poverty trends change before the COVID-19 crisis?\",\"answer\":\"Between 2004 and 2019, poverty in Peru fell by 38.5 percentage points, with most progress occurring from the early 2000s to 2013. Economic growth was pro-poor and supported reductions in income inequality.\"},{\"question\":\"What impact did the COVID-19 shock have on poverty and the economy?\",\"answer\":\"The COVID-19 shock erased about a decade of progress. The economy contracted by 11 percent and poverty increased by 10 percentage points, revealing the fragility of prior social gains.\"},{\"question\":\"Which factors are highlighted as drivers and risks for future poverty reduction in Peru?\",\"answer\":\"Labor market outcomes drove most of the prior poverty decline, but structural weaknesses such as high informality and low productivity threaten the ability to continue reducing poverty. The chapter also emphasizes the need to restore growth and improve social protection against future shocks.\"}]",1784469644,121,{"code":4,"msg":31,"data":32},"ok",{"site_id":25,"language":24,"slug":33,"title":13,"keywords":34,"description":14,"schema_data":35,"social_meta":87,"head_meta":89,"extra_data":91,"updated_unix":28},"poverty-inequality-and-household-welfare-chapter-1-key-messages","",{"@graph":36,"@context":86},[37,54,69],{"@type":38,"itemListElement":39},"BreadcrumbList",[40,44,48,51],{"item":41,"name":42,"@type":43,"position":21},"https://docshare.wps.com","Home","ListItem",{"item":45,"name":46,"@type":43,"position":47},"https://docshare.wps.com/document/","Document",2,{"item":49,"name":12,"@type":43,"position":50},"https://docshare.wps.com/document/research-report/",3,{"item":52,"name":13,"@type":43,"position":53},"https://docshare.wps.com/document/poverty-inequality-and-household-welfare-chapter-1-key-messages/108219/",4,{"url":52,"name":13,"@type":55,"author":56,"headline":13,"publisher":58,"fileFormat":61,"inLanguage":24,"description":14,"dateModified":62,"datePublished":63,"encodingFormat":61,"isAccessibleForFree":64,"interactionStatistic":65},"DigitalDocument",{"name":9,"@type":57},"Person",{"url":41,"name":59,"@type":60},"DocShare","Organization","application/pdf","2026-07-30","2026-07-19",true,{"@type":66,"interactionType":67,"userInteractionCount":20},"InteractionCounter",{"@type":68},"ViewAction",{"@type":70,"mainEntity":71},"FAQPage",[72,78,82],{"name":73,"@type":74,"acceptedAnswer":75},"How did Peru’s poverty trends change before the COVID-19 crisis?","Question",{"text":76,"@type":77},"Between 2004 and 2019, poverty in Peru fell by 38.5 percentage points, with most progress occurring from the early 2000s to 2013. Economic growth was pro-poor and supported reductions in income inequality.","Answer",{"name":79,"@type":74,"acceptedAnswer":80},"What impact did the COVID-19 shock have on poverty and the economy?",{"text":81,"@type":77},"The COVID-19 shock erased about a decade of progress. The economy contracted by 11 percent and poverty increased by 10 percentage points, revealing the fragility of prior social gains.",{"name":83,"@type":74,"acceptedAnswer":84},"Which factors are highlighted as drivers and risks for future poverty reduction in Peru?",{"text":85,"@type":77},"Labor market outcomes drove most of the prior poverty decline, but structural weaknesses such as high informality and low productivity threaten the ability to continue reducing poverty. The chapter also emphasizes the need to restore growth and improve social protection against future shocks.","https://schema.org",{"og:url":52,"og:type":88,"og:title":13,"og:site_name":59,"og:description":14},"article",{"robots":90,"canonical":52},"index,follow",{"doc_id":7,"site_id":25},{"code":4,"msg":5,"data":93},[94,98,102,106,110,115,120,123,128,131,135],{"id":21,"doc_module":4,"doc_module_name":46,"category_name":95,"show_sort_weight":96,"slug":97},"Story & Novel",90,"story-novel",{"id":47,"doc_module":4,"doc_module_name":46,"category_name":99,"show_sort_weight":100,"slug":101},"Literature",80,"literature",{"id":53,"doc_module":4,"doc_module_name":46,"category_name":103,"show_sort_weight":104,"slug":105},"Exam",70,"exam",{"id":20,"doc_module":4,"doc_module_name":46,"category_name":107,"show_sort_weight":108,"slug":109},"Comic",60,"comic",{"id":111,"doc_module":4,"doc_module_name":46,"category_name":112,"show_sort_weight":113,"slug":114},6,"Technology",50,"technology",{"id":116,"doc_module":4,"doc_module_name":46,"category_name":117,"show_sort_weight":118,"slug":119},7,"Healthcare",40,"healthcare",{"id":11,"doc_module":4,"doc_module_name":46,"category_name":12,"show_sort_weight":121,"slug":122},30,"research-report",{"id":124,"doc_module":4,"doc_module_name":46,"category_name":125,"show_sort_weight":126,"slug":127},9,"Religion & Spirituality",20,"religion-spirituality",{"id":126,"doc_module":4,"doc_module_name":46,"category_name":129,"show_sort_weight":126,"slug":130},"World Cup","world-cup",{"id":132,"doc_module":4,"doc_module_name":46,"category_name":133,"show_sort_weight":132,"slug":134},10,"Lifestyle","lifestyle",{"id":136,"doc_module":4,"doc_module_name":46,"category_name":137,"show_sort_weight":20,"slug":138},19,"General","general"]