Mexico City. In 2023, the Mexican population that lives on the equivalent of $6.85 and is classified in the poverty range will reduce by 1.0%, according to the report Recent trends in poverty and inequality in Latin America and the Caribbean released today by the World Bank.
From 2021 to 2023, the segment living under this condition decreased from 21.8 percent to 20.8 percent.
The segment of vulnerable people, which are those who live with incomes between 6.85 dollars and 14 dollars per day, and who face a high risk of falling into poverty in the event of shocks economic, the reduction was from 38.6 in 2021 to 38.3 percent, that is, 0.3 percent.
Regarding the middle class, which can spend between 14 and 81 dollars a day, it rose 1.1 percent, going from 38.4 to 39.6 percent in the aforementioned period.
Poverty in AL, at the lowest level so far this century
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, reported the World Bank.
In the report, the financial entity reported that 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 the population in poverty 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.
The segment of vulnerable people has remained stable in LAC.
Extreme poverty, represented by those who live on less than $2.15 a day, also decreased by 1 percentage point since 2016, since by 2023 it stood at 3.9 percent.
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 of poverty reduction, but its gradual elimination is affecting the incomes of the poorest households in several LAC economies.
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 of poverty reduction that has been recorded in LAC since 2016 is a reflection of the low levels of economic growth.
Since 2009, LAC has had the lowest annualized growth in the world: just 1.9 percent, significantly below the global figure (2.7 percent) and other upper-middle-income regions, such as East Asia and the Pacific (AOP). , where growth was 5.9 percent.
The data in the report is based on the most recent household survey and the socioeconomic database for Latin America and the Caribbean (SEDLAC), created by the World Bank and the Center for Distributive, Labor and Social Studies (CEDLAS).
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#Reduces #population #poverty #risk
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The report suggests potential economic headwinds might slow poverty reduction in 2024. What are some of these economic challenges, and how can policymakers balance the need for sustainable economic growth with the imperative of protecting social safety nets for vulnerable populations?
## World Today News: Sitting Down with Experts on Poverty Reduction in Latin America
**Introduction:**
Welcome to World Today News. Today, we delve into the encouraging news of poverty reduction in Latin America and the Caribbean, as reported by the World Bank. Joining us are two esteemed guests:
* **Dr. Gabriela Ramirez:** A renowned economist specializing in Latin American development and poverty alleviation.
* **Maria Rodriguez:** A social worker with extensive experience working with vulnerable communities throughout the region.
**Section 1: Understanding the Progress**
* **Host**: Dr. Ramirez, the World Bank report highlights a significant decrease in poverty levels in Latin America and the Caribbean. Could you elaborate on the factors contributing to this positive trend?
* **Dr. Ramirez**:
* **Host**: Maria, as someone working directly with these communities, what tangible changes have you observed due to this reduction in poverty?
* **Maria**:
* **Host**: The report mentions that improvements in the labor market are a substantial driver of this progress. Could you both shed light on the specific changes in the labor sector that have made a difference?
* **Dr. Ramirez**:
* **Maria**:
**Section 2: The Vulnerability Gap**
* **Host**: While the overall poverty rate has decreased, the report also points out that the proportion of vulnerable individuals remains relatively stable. Dr. Ramirez, what are the underlying reasons for this stagnation, and what challenges does this pose for sustained progress?
* **Dr. Ramirez**:
* **Host**: Maria, what are some of the unique challenges faced by these vulnerable households, and how can their resilience be further strengthened?
* **Maria**:
* **Host**: The World Bank suggests that public transfers have played a vital role in poverty reduction, but their gradual elimination is affecting the poorest households. What policy measures could ensure a sustainable safety net for these vulnerable individuals?
**Section 3: Looking Ahead**
* **Host**: Dr. Ramirez, the report projects a slight slowing down of poverty reduction in 2024.
What are the potential economic headwinds that might hinder progress, and what strategies can be employed to mitigate these risks?
* **Dr. Ramirez**:
* **Host**: Maria, based on your experiences working on the ground, what are some grassroots initiatives or community-based solutions that can complement broader policy efforts in tackling poverty?
* **Maria**:
* **Host**: Thank you both for sharing your valuable insights on this critical issue. The progress made in recent years is commendable, but the journey towards sustainable poverty eradication requires continued dedication and collaborative efforts from governments, institutions, and communities alike.
**Concluding Remarks:**
We hope this interview sheds light on the complex dynamics of poverty reduction in Latin America and the Caribbean. Stay tuned to World Today News for continued coverage on this crucial issue as we explore further solutions and perspectives from across the globe.
