Comparison Of Standards Of Living In Peru

Peru is a country in South America and considered as upper middle income by the World Bank. Peru remained in development between 2005 and 2014, with an average growth rate of 6.1% during a low inflation period, explained from its prudent macroeconomics policies (The World Bank, "Peru", 2015). When a country has a low inflation rate, it means that the population are in a good standing of living and able to buy goods and services which runs the economy. Also during low inflation people appeal to borrow more money since interest rates are low during these periods (The World Bank, "Peru", 2015). The Gross National Income per capita based on purchasing power parity from 2011 to 2014 is 9570, 10330, 11080, 11440 respectively. This GNI indicator consists of the total final goods and services produced by the domestic economy of a country, measured within a year.

The PPP allows making more accurate comparisons of standards of living across countries, because goods and services may cost more in one country than in another (The World Bank, "Peru", 2015). Statistics are given by the World Bank website shows an improvement on the income of the population, which means people in Peru, have good standards of living. Also by comparing the GDP per capita of the Peru during its recent years, statistics shows an increase on the good and services produced within a country in a given year. According to World Bank data; the adult literacy rate is 93.8% of the population, which is considered a high rate of education that returns on the development of the country. Plus, since year 2001 the poverty rate keep decreasing between 2001 and 2014, 54.8% to 22.7% of the population. So, in Peru poverty rate had approximately decreased by half which means that the country did not face many challenges to keep growing (The World Bank, "Peru",