Poverty in Brazil decreased to its lowest historical level in 2024, reaching 23.1 percent of the population after 8.6 million people emerged from this situation, the state-run Brazilian Institute of Geography and Statistics (IBGE) reported this Wednesday.

The IBGE detailed in its report that the South American country had 48.9 million people living on less than $6.85 per day in 2024.

In 2023, the number encompassed 57.6 million inhabitants, showing a significant reduction for the third consecutive year and the consolidation of the socio-economic recovery following the COVID-19 pandemic.

The data indicates that poverty had increased sharply in 2021, reaching 77 million people (36.8 percent of the population), but has been declining since 2022 when it stood at 31.6 percent.

The historical trend shows marked variations in recent years, which, according to IBGE analyst André Geraldo de Moraes Simões, combine two factors: an improving job market and the strengthening of support programs.

Sharp Drop in Extreme Poverty

The IBGE also registered a strong decline in extreme poverty, defined as the population living on up to $2.15 per day.

The number of people in this condition dropped from 9.3 million in 2023 to 7.4 million in 2024, meaning 1.9 million people left this situation.

According to the report, this is the lowest level of extreme poverty since 2012, when this indicator began to be measured. It represents a decrease of 4.2 percentage points compared to 2023, when it was 27.3 percent.

Persistent Inequalities Highlighted

Despite the progress, the study highlights persistent regional inequalities, with the north and northeast regions showing much higher rates than the national average.

The report also underscores inequality among racial groups. Among the white population, 15.1 percent lived in poverty and 2.2 percent in extreme poverty.

The report shows that poverty disproportionately affects informal workers. Among employed people without a formal contract, the proportion reached 20.4 percent, while among workers with a formal contract it was 6.7 percent.