Latin America is dominated today by emerging economies, according to the World Economic Forum.
According to the Inclusive Development Index (IDI) of the World Economic Forum, Peru is ranked number 5 because of a reduction of net income and the sanitary conditions of the country’s population, says Gestión.
Most countries are focused on their economic growth, which is measured by their per capita income, employment, and productivity. Nevertheless, according to Gestión, many nations forget to address other important factors, such as inequality of wealth, public debt, the average income of the population, and scarcity of natural resources.
According to the World Economic Forum, all of the above are key indicators when it comes to determining if an economy is progressing in a healthy and inclusive way.
The IDI analyzes the welfare state of a total of 103 States. It was created to measure countries on a scale from 1 to 7, which means worst performance, and best performance, respectively.
Today, Gestión indicates that Latin America is dominated by emerging economies, such as Panama’s, Uruguay’s, Chile’s, and Costa Rica’s, but also Peru’s.
For instance, Panama ranked as the healthiest economy in the region with an IDI of 4.54 out of 7, and also an average growth of 4.8% between 2012 and 2016. In Peru’s case, the Inclusive Development Index reached 4.3 during this period, with also a diminishment in the last five years because of a reduction in net income and the population’s sanitary conditions.