Extreme poverty in Brazil drops by 40% in 2023

A real increase in workers’ average income, a drop in unemployment and the resumption of proven efficient social policies are some of the factors that have led Brazil to reduce the extreme poverty rate by 40% between 2022 and 2023. A drop was observed in all regions, with the highest percentages in the North and Northeast and in the gender and race breakdown, with black women standing out.

This shows that we are on the right track. We are lifting eve greater numbers of people out of hunger, extreme poverty and poverty, making them grow and improve their lives” — Wellington Dias, Minister of Social Development and Assistance, Family and the Fight Against Hunger

Data from the 2024 report by the Brazilian Inequalities Observatory (Observatório Brasileiro das Desigualdades) also points to a 20% drop in unemployment. The real gain in average income from all sources was 8.3%, higher among women than men: 9.6% compared to 7.7%. The result was celebrated by the Minister of Social Development and Assistance, Family and the Fight Against Hunger (Ministério do Desenvolvimento e Assistência Social, Família e Combate à Fome /MDS), Wellington Dias.

“Yet another study has been released showing a significant drop in extreme poverty in Brazil, this time by the Brazilian Inequality Observatory. The most important thing is the drop in extreme poverty in all regions of the country and among black women, who are the majority in extreme poverty, with a reduction of 45.2%. This shows that we are on the right track. More and more we are lifting people out of hunger, extreme poverty and poverty, making them grow and improve their lives,” the head of the MDS pointed out.

The region with the highest percentage reduction in extreme poverty was the North, with 45.1%, which also had the biggest drop in the unemployment rate: 21.7% and the highest average total growth in the population's income, with 11.34%.

The Observatory aims to monitor the behavior of benchmark indicators on inequalities in Brazil and provide input for civil society and governments, parliamentarians and public managers to improve public policies to promote equity. It is the result of the National Pact to Combat Inequalities (Pacto Nacional pelo Combate às Desigualdades).

MORE TRANSFERS – Among public policies, the Bolsa Família Program (PBF) is pointed out by several studies as being effective in combating poverty. When the new basket of PBF benefits was implemented and the program was resumed in 2023, economist Daniel Duque, from Ibre/FGV, projected a reduction in extreme poverty last year. 

Among the basket of benefits, each child between the ages of zero and six receives an additional BRL 150, while pregnant women, nursing mothers and children and adolescents between the ages of seven and 18 are entitled to BRL 50. To be eligible for Bolsa Família, the main rule is that the income of each person in the family must be a maximum of BRL 218 per month.

It is worth noting that, out of the more than 20.7 million families benefiting from Bolsa Família in August, 17.33 million are headed by women (83.5%). Of the more than 54.53 million people, 31.73 million are female (58.2%) and 39.74 million are black/brown (73%).

In April, the Continuous National Household Sample Survey (Pesquisa Nacional por Amostra de Domicílios /PNAD), coordinated by the Brazilian Institute of Geography and Statistics (Instituto Brasileiro de Geografia e Estatística /IBGE), showed that the poverty rate in Brazil had fallen by 27.5% from 2022 to 2023. In absolute numbers, more than 8.5 million people were lifted out of poverty last year. The drop occurred in 26 of the 27 Federation Units.

Another survey that points to an improvement in the living conditions of people in situations of vulnerability in the country was the United Nations Report on the State of Global Food Insecurity (SOFI 2024), released in July. The document revealed an 85% drop in severe food insecurity in Brazil in 2023.