The economic outlook for Peru in 2023: increase in income but with persistent challenges

The National Institute of Statistics and Informatics (INEI) has revealed interesting data about the economic landscape of Peru during the year 2023. According to the latest report, the average monthly income of Peruvians increased by 9.9% compared to the previous year, reaching the figure of S/1,674.4. However, this growth was not evenly distributed across all economic sectors. According to the report on 'Behavior of labor market indicators at the national level and in 26 cities' by INEI, more than 150,000 jobs were lost during 2023, contributing to a recession that impacted various aspects of the Peruvian economy. Despite this challenging scenario, Peruvians managed to increase their average monthly income by S/150, and in Metropolitan Lima, this increase was even greater, reaching S/255.9 according to Infobae data. It is important to highlight that, although Lima reported an average monthly income of S/2,141.1, it did not rank among the top three cities in Peru with the highest incomes in 2023. These three leading cities in income were mentioned by INEI, demonstrating that growth was not concentrated solely in the capital. The INEI report also details that compared to 2022, income from work increased in all branches of activity. For example, the Construction sector, despite losing more than 2,000 jobs in 2023, experienced a significant increase in their monthly income, rising from S/1,847.7 to S/2,029.2. Furthermore, it is worth mentioning that during 2023, a salary increase was confirmed for nurses, midwives, and higher education teachers, sparking expectations about the possible discussion of an increase in the Minimum Vital Remuneration (RMV). The Minister of Labor and Employment Promotion, Daniel Maurate, has emphasized the importance of supporting micro and small businesses to face these kinds of changes, especially in a context of economic recovery. In this regard, Maurate has mentioned that, although the issue of increasing the RMV could not be addressed in 2023 due to the recession facing the country, better prospects are expected for this year. With the optimistic projections outlined by the former Minister of Economy, Alex Contreras, a horizon of growth and opportunities for the Peruvian economy in 2024 is envisioned.