[{"bbox": [158, 152, 1073, 313], "category": "Text", "text": "The action also will contribute to the fulfilment of the EU Gender Action Plan 2021-2025 GAP III⁵, in particular to its thematic area of engagement “Addressing the challenges and harnessing the opportunities offered by the green transition and the digital transformation”. Likewise, it will contribute to the implementation of the EU Strategy on the Rights of Persons with Disabilities⁶, particularly on the commitment to supporting countries to improve accessibility of the environment and the EU’s Action Plan on Human Rights and Democracy 2020-2024⁷."}, {"bbox": [147, 347, 383, 378], "category": "Section-header", "text": "# 2 RATIONALE"}, {"bbox": [147, 396, 294, 423], "category": "Section-header", "text": "## 2.1 Context"}, {"bbox": [157, 439, 1073, 891], "category": "Text", "text": "After an average economic growth rate of 4.8% over the past 20 years⁸, Peru has now entered a period of slower growth, with its GDP growth rate declining to 2.3%. In May 2024, economic activity fell by 0.28% year-on-year and this downturn has not yet been overcome. On the other hand, in 2023, poverty affected 29% of the Peruvian population (1 out of 3 Peruvians lives in poverty) and extreme poverty increased from 5% in 2022 to 5.7% in 2023⁹. In 2023, Peru scored 0.76 in the gender gap index, which shows a gender gap of approximately 24% (women are 24% less likely than men to have equal opportunities) and a slight increase in comparison to the previous year score¹⁰. Those figures are no surprise in a country where the economic model is based on 80 to 85% of the working force belonging to the informal sector while only 8% of the population pay income taxes. Despite the country economic growth during the last decades, the political crisis is persistent, and the current administration has difficulties in managing a system based on a fragile social contract. Democratic and independent institutions are experiencing a serious process of weakening and instability while Civil Society Organisations (CSOs) suffer from direct attacks from the Authorities with an empowered Parliament supporting counter-reform legislation for benefitting to corporate and personnel interests and conservative ideological beliefs. These political and social factors are affecting the country's economic growth, undermined trust of citizens in public powers and the confidence of foreign investors, at least the European ones."}, {"bbox": [157, 903, 1073, 1010], "category": "Text", "text": "Despite a fragile political ecosystem, the Government intends to maintain a prudential management of State budget and reserves and to propose measures through to restore adequate growth rates, encourage private actors to invest in Peru and enhance infrastructure development¹¹. In her speech for the National Day on 28 July, the President announced the creation of a Ministry of Infrastructures."}, {"bbox": [157, 1021, 1073, 1152], "category": "Text", "text": "The country economic recovery must address, not only the social cohesion long lasting situation but also the challenges of climate change, ecosystem degradation and the necessary transition towards a circular economy. This involves the development of enabling conditions such as the creation of legal, social, financial, and economic frameworks that promote circular economic models, sustainable value chains and climate-resilient investments."}, {"bbox": [157, 1166, 1073, 1247], "category": "Text", "text": "Ignoring those frameworks would lead to unsustainable and vulnerable value chains, suboptimal use of resources and an increase in waste generation, both solid and liquid, negatively impacting the environment and public health."}, {"bbox": [157, 1258, 1073, 1393], "category": "Text", "text": "Following 20 years of average economic growth of 4.8%, Peru has entered a period of lower growth. In 2023, economic activity experienced a contraction of a 0.6%¹², which was an unprecedented occurrence since 1998, excluding the most critical period of the pandemic in 2020. Even though the Peruvian economy is expected to rebound this year, expansion is estimated to be 2.7%, seven tenths of a percentage point above the previous projection. Nevertheless, it is important to consider that a"}, {"bbox": [147, 1419, 674, 1441], "category": "Footnote", "text": "⁵ https://ec.europa.eu/commission/presscorner/detail/en/ip_20_2184"}, {"bbox": [147, 1441, 1000, 1463], "category": "Footnote", "text": "⁶ https://op.europa.eu/en/publication-detail/-/publication/3e1e2228-7c97-11eb-9ac9-01aa75ed71a1/language-en"}, {"bbox": [147, 1462, 1024, 1484], "category": "Footnote", "text": "⁷ https://www.eeas.europa.eu/sites/default/files/eu_action_plan_on_humanRights_andDemocracy_2020-2024.pdf"}, {"bbox": [147, 1484, 625, 1505], "category": "Footnote", "text": "⁸ Instituto Nacional de Estadística e Informática (inei.gob.pe)"}, {"bbox": [147, 1505, 1057, 1527], "category": "Footnote", "text": "⁹ Pobreza crece por segundo año consecutivo y alcanza al 29% de la población de Perú | Ojo Público (ojo-publico.com)"}, {"bbox": [147, 1527, 680, 1548], "category": "Footnote", "text": "¹⁰ Gender Inequality Index | Human Development Reports (undp.org)"}, {"bbox": [147, 1548, 971, 1570], "category": "Footnote", "text": "¹¹ https://www.gob.pe/institucion/mef/campa%C3%B1as/13306-plan-de-impulso-al-crecimiento-economico."}, {"bbox": [147, 1570, 1048, 1613], "category": "Footnote", "text": "¹² https://www.portafolio.co/amp/internacional/economia-de-peru-actividad-economica-de-peru-se-contrajo-un-0-6-en-2023-599193"}, {"bbox": [973, 1680, 1082, 1705], "category": "Page-footer", "text": "Page 6 of 29"}]