Effects of Covid 19 on the economy of the rural population of Peru
An analysis from a dynamic systems approach
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The economy of the rural population of Peru, as a result of the social isolation to control the effects of Covid 19, was the most affected due to the fall in demand and price of agricultural products, generating job losses and worsening the poverty conditions of the population. In order to understand the effects of Covid on the population's economy and approximate the effects to the year 2026, a dynamic model was built. First, it corresponds to a normal situation, without Covid 19. Second, it corresponds to the situation generated by Covid 19, and third, it corresponds to the mechanisms establ...
The economy of the rural population of Peru, as a result of the social isolation to control the effects of Covid 19, was the most affected due to the fall in demand and price of agricultural products, generating job losses and worsening the poverty conditions of the population. In order to understand the effects of Covid on the population's economy and approximate the effects to the year 2026, a dynamic model was built. First, it corresponds to a normal situation, without Covid 19. Second, it corresponds to the situation generated by Covid 19, and third, it corresponds to the mechanisms established by the government to improve the situation generated by the pandemic. The conclusions reached were that the pandemic generated a drop in the demand for agricultural products of up to -13%, and prices of up to -40%; decreasing employment by up to -10% and increasing poverty by more than 10%. Approximations to the year 2026 indicate that the situation will worsen if urgent actions are not taken, and the mechanisms implemented to increase the demand and price of agricultural products will not have the expected results.
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