Brazil Sees Historic Drop in Poverty and Extreme Poverty Levels

Brazil has achieved its lowest levels of poverty and extreme poverty since the Brazilian Institute of Geography and Statistics (IBGE) began its historical series in 2012. According to the IBGE report released on December 3, 2025, more than 10 million Brazilians moved out of poverty between 2023 and 2024. The poverty rate fell from 27.3% in 2023 to 23.1% in 2024, equating to approximately 8.6 million people. Meanwhile, extreme poverty declined from 4.4% to 3.5%, representing 1.9 million fewer individuals living on less than $2.10 per day (adjusted to local currency parameters). This marks the third consecutive annual decline since the peak poverty rate of 36.8% in 2021.

The continued reduction is attributed mainly to the Bolsa Família program's maintenance of payments above pre-pandemic levels and a more dynamic labor market. Without social programs like Bolsa Família, extreme poverty would be nearly three times higher, potentially increasing from 3.5% to 10.0%, according to IBGE data. The Northeast region saw the largest improvement with poverty dropping sharply from 47.2% in 2023 to 39.4% in 2024.

Poverty disproportionately affects vulnerable groups; it is higher among women (24.0%) compared to men (22.2%) and notably affects black and brown populations, who constitute 56.8% of Brazil’s population but 71.3% of those living in poverty. The Gini index, measuring income inequality, would increase by 7.5% in the absence of social benefits, underscoring these programs' crucial role in mitigating inequality, especially in the North and Northeast regions.

Minister of Development and Social Assistance Wellington Dias emphasized, "We are on the right track. Besides alleviating hunger, we are also overcoming extreme poverty and poverty." These findings reflect significant progress in Brazil's socioeconomic trends fostered by targeted government interventions and evolving market dynamics.