Peru's Minimum Wage Hike: Boosting Economic Confidence Amidst Challenges

Peruvian President Dina Boluarte announced a 10% increase in the minimum wage, raising it to 1,130 soles, effective next year. This is part of an effort to stimulate the economy post-recession. Despite her unpopularity, Boluarte is focused on achieving tangible benefits for Peru's economy, currently recovering with a 3.2% growth projection.

Peruvian President Dina Boluarte has unveiled a plan to raise the country's minimum wage by 10%, from 1,025 to 1,130 soles, starting next year. This move signals an effort to bolster the Andean nation's economy following its recessionary dip.

During a televised address, Boluarte emphasized the importance of economic recovery, citing a projected 3.2% growth and a resurgence in private investments. The wage increase is the first since May 2022, underlining a shift from predecessor Pedro Castillo's administration, which ended tumultuously.

Despite Boluarte's low approval ratings, the wage hike aims to alleviate financial burdens on Peru's poorest. Critics from the business sector, however, warn it might lead to increased informal employment. Boluarte remains resolute, stating governance should be grounded in pursuing national objectives rather than popularity metrics.

(With inputs from agencies.)