Brazil Sees Historic Drop in Poverty and Extreme Poverty Levels

BRASIL, 03/12/2025 — Brazil has reported the lowest levels of poverty and extreme poverty since the start of the historical series by the Brazilian Institute of Geography and Statistics (IBGE). Released on Wednesday, December 3, the data shows a significant decline in both indicators from 2023 to 2024.

According to the IBGE’s Social Indicators Synthesis (SIS) 2024, the percentage of the population living in extreme poverty decreased from 4.4% to 3.5%, marking a fall of 0.9 percentage points. This reduction translates to approximately 1.9 million individuals moving out of extreme poverty. On the other hand, poverty rates dropped from 27.3% to 23.1%, equalling a decrease of 8.6 million people.

Brazil does not have an official poverty line, so IBGE uses international benchmarks defined by the World Bank. In 2024, households with incomes lower than US$ 6.94 (approximately R$ 36.65) per person per month are classified as poor, while those earning less than US$ 2.18 (about R$ 11.50) are considered extremely poor.

In 2024, the average household income per capita reached R$ 2,017 monthly, the highest figure recorded by the IBGE. This is an increase from R$ 1,697 in 2012. Notably, the lowest 10% of households experienced a remarkable income surge of 13.2% in just one year.

André Geraldo de Moraes Simões, a researcher at IBGE, highlighted that the decline in poverty levels is closely linked to the growth in average income. He emphasized that the majority of household income is derived from work, especially during dynamic market conditions.

Simões also noted that government assistance programs, such as Bolsa Família and Auxílio Brasil, played crucial roles during specific periods. Without these social benefits, the extreme poverty rate would be expected to rise significantly, demonstrating their impact.

Despite overall improvements, certain demographics remain more vulnerable. For instance, the Northeast region, which represents 26.9% of the Brazilian population, holds 50.3% of those in extreme poverty and 45.8% of the country’s poor.

IBGE’s findings also revealed that 11.9% of employed individuals live in poverty, with the majority being domestic workers and qualified agricultural laborers. Meanwhile, the unemployment rate corresponds to a greater poverty risk, impacting half of the unemployed individuals.

The study also examined racial disparities, showing that poverty disproportionately affects Black and mixed-race individuals, who account for 71.3% of the country’s impoverished population. Among women, poverty rates are notably higher compared to men, with additional insights into the specific hardships faced by children and the elderly.

As Brazil moves towards addressing these challenges, the data highlights both the successes and ongoing inequalities that remain paramount in the national dialogue.