Brazil's Poverty Rate Reaches Lowest Level Since 2012 as 8.6 Million Escape Poverty in 2024

Significant Reduction in Poverty Levels

Brazil has achieved a notable milestone in its fight against poverty, with the national poverty rate dropping to its lowest level since 2012. More than 8.6 million Brazilians were lifted out of poverty in 2024, bringing the overall rate down to 23.1% of the population. This represents a decrease from 27.3% in 2023, according to data released by the Brazilian Institute of Geography and Statistics (IBGE) in its 'Summary of Social Indicators' survey.

The total number of people living below the poverty line in Brazil in 2024 stood at 48.9 million, a reduction from 57.6 million in 2023. The World Bank's definition of poverty, which classifies individuals living on less than USD 6.85 per day (approximately BRL 694 per month in 2024), was used for these calculations.

Decline in Extreme Poverty and Income Inequality

The country also saw a significant reduction in extreme poverty, defined as living on less than USD 2.15 per day (around BRL 218 per month in 2024). The number of people in extreme poverty fell from 9.3 million in 2023 to 7.4 million in 2024, marking a drop from 4.4% to 3.5% of the population. This is the lowest level recorded for extreme poverty since data collection began in 2012.

Furthermore, the Gini Index, a measure of income inequality, reached 0.504 in 2024, its lowest value since 2012, indicating a slight improvement in income distribution.

Key Factors Driving Poverty Reduction

Experts and IBGE researchers attribute this positive trend to a combination of factors:

• Dynamic Labor Market: A significant recovery in the labor market has played a crucial role, with unemployment rates falling to their lowest levels in over a decade. This has led to strong job creation and an increase in real wages.
• Expanded Social Welfare Programs: The expansion and strengthening of social assistance programs, particularly the federal government's Bolsa Família, have been instrumental. This program provides financial aid to over 20 million Brazilian households. IBGE analysis suggests that without these income transfer programs, both poverty and extreme poverty rates would have been substantially higher.
• Post-Pandemic Recovery: The sustained decline in poverty for the third consecutive year signals a robust socioeconomic recovery following the COVID-19 pandemic.

Ongoing Challenges and Government Commitment

Despite the significant progress, challenges persist. Regional disparities remain, with the North and Northeast regions still exhibiting higher poverty rates. Inequalities also disproportionately affect Black and brown Brazilians and informal workers.

President Luiz Inácio Lula da Silva's administration has made the fight against poverty a central policy, reinstating and expanding programs like Bolsa Família. Brazil has also taken a leading role on the international stage, launching the Global Alliance Against Hunger and Poverty at a G20 summit in November, aiming to foster international cooperation to combat inequality worldwide.