In 2023, the population in poverty, who live on the equivalent of $6.85 and are classified in this situation, will be reduced by one percentage point, according to the report. Recent poverty and inequality trends in Latin America and the Caribbean, that was released yesterday by the World Bank.
From 2021 to 2023, the segment living under this condition decreased from 21.8 percent to 20.8 percent.
Last September, the organization made a projection that between 2018 and 2024, 9 million 574 thousand people in Mexico left poverty, even though in that period the economy was hit by the effect of measures against the pandemic, which It caused a contraction of the gross domestic product of 8 percent in 2020.
In the update released yesterday, which already closes the figures for 2023, the organization mentions the group of vulnerable people, which are those who live with incomes between 6.85 and 14 dollars per day, and who face a high risk of falling into poverty due to the eventuality of economic shocks, the reduction was from 38.6, in 2021, to 38.3 percent.
Regarding the middle class, which can spend between 14 and 81 dollars a day, it rose from 38.4 to 39.6 percent in the aforementioned period.
Brazil was the country that reduced poverty the most (3.3 percent), it also did so in the segments of vulnerable people – along with Colombia (0.6 percent in both cases) and raised the middle class by 4 percent, a level only below Dominican Republic (4.7 percent).
In 2023, poverty in Latin America and the Caribbean (LAC) fell to its lowest point so far this century, as one in four people in the region lives with incomes below the countries’ poverty line of upper-middle income that is, with 6.85 dollars per person per day.
The level represents a reduction of 4.7 percentage points in the regional poverty rate between 2021 and 2023, with which 25 percent of the population lives in poverty.
In contrast, the middle class increased steadily, since in 2021 it represented 36 percent of the region’s population and in 2023 it grew to 41.1 percent, which is the highest level so far this century.
The World Bank projects that the proportion of poor will fall from 25 percent in 2023 to 24.7 percent in 2024, while the middle class will rise from 41.1 to 41.4 percent.
Extreme poverty, which represents those who live on less than $2.15 a day, also decreased by one percentage point since 2016, reaching 3.9 percent by 2023.
However, eradicating poverty in LAC would cost at least 99 million dollars a day.
Positive outcomes in the labor market drove the fall in poverty levels in most LAC countries between 2021 and 2023. Almost two-thirds of the reduction is explained by that reason, and public transfers remain an important driver, but its gradual elimination is affecting the income of the most vulnerable households in several countries.
However, modest growth in the region is expected to drive a slight decline in poverty reduction in 2024.
Gross domestic product (GDP) in Latin America and the Caribbean (LAC) grew 2.1 percent in 2023, 0.6 percentage points, and the region is experiencing a period of moderate economic growth.
The World Bank stated that efforts to reduce poverty in LAC depend largely on macroeconomic conditions, since the slow pace registered since 2016 is a reflection of the low levels of economic growth.
Since 2009, Latin America and the Caribbean have had the lowest annualized growth in the world: just 1.9 percent.
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#Poverty #reduction #country #continued #reports
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**Despite the positive trends, what are the most significant threats to the sustainability of poverty reduction efforts in the region, and how can these threats be mitigated?**
## World Today News – Interview: Poverty Reduction in Latin America and the Caribbean
**Host:** Welcome to World Today News. Today we’re diving into the latest report from the World Bank, which highlights a promising trend in Latin America and the Caribbean: poverty reduction.
Joining us are two esteemed guests:
* **Dr. Maria Sanchez**, an economist specializing in Latin American development, and
* **Ambassador Carlos Rodriguez**, former representative to the World Bank from a Latin American country.
Thank you both for being here today.
**Introduction:**
**Host:** Dr. Sanchez, the World Bank report shows a significant decline in poverty levels in Latin America and the Caribbean between 2021 and 2023. How can you explain this positive development despite the economic challenges the region has faced?
**Dr. Sanchez:**
**(Answer focusing on factors like labour market improvements, public transfers, and regional economic growth while acknowledging the slow pace of growth overall)**
**Host:** Ambassador Rodriguez, from your experience, what government policies and initiatives have played a crucial role in contributing to this poverty reduction?
**Ambassador Rodriguez:**
**(Answer highlighting specific successful policies in his country or others in the region, emphasizing the importance of targeted interventions and social safety nets)**
**Section 1: The Role of Economic Factors**
**Host:** The report attributes a significant portion of the poverty reduction to improvements in the labour market. Dr. Sanchez, can you elaborate on what these improvements look like and how they translate to tangible benefits for people living in poverty?
**Dr. Sanchez:**
**(Detailed explanation of job creation, wage increases, and access to better opportunities, drawing on specific examples if possible)**
**Host:** Ambassador Rodriguez, do you agree with this assessment? What other macroeconomic factors, beyond the labour market, can influence poverty levels in the region?
**Ambassador Rodriguez:**
**(Discussion beyond the labour market, potentially touching upon investment, infrastructure, trade, and the role of international organizations)**
**Section 2: The Challenges Ahead**
**Host:** While this report paints a positive picture, the World Bank cautions that progress can be fragile. Dr. Sanchez, what are the potential risks that could reverse this trend of poverty reduction?
**Dr. Sanchez:**
**(Discussion of potential threats like global economic slowdowns, rising inflation, political instability, and the impact of climate change)**
**Host:** Ambassador Rodriguez, what steps can Latin American governments take to ensure that this positive momentum continues and that gains are sustainable and inclusive?
**Ambassador Rodriguez:**
**(Emphasis on long-term planning, diversification of economies, investment in education and healthcare, building resilience to external shocks, and fostering regional cooperation)**
**Section 3: Looking Forward**
**Host:** Despite the challenges, this report offers a glimmer of hope. Dr. Sanchez, what are some bright spots you see for the future of poverty reduction in Latin America and the Caribbean?
**Dr. Sanchez:**
**(Highlighting innovation, entrepreneurship, youth empowerment, social movements, and international support as potential drivers of positive change)**
**Host:** Ambassador Rodriguez, what message would you like to leave our viewers with regarding the fight against poverty in the region?
**Ambassador Rodriguez:**
**(Closing message emphasizing optimism, collective action, and the need for continued dedication to creating a more equitable and prosperous future for all)
**Host:** Thank you both for sharing your invaluable insights with us today. We’ll be sure to continue covering this important topic as it evolves.
