📉 Lowest poverty level of the 21st century in Latin America

• Poverty in Latin America and the Caribbean has decreased by 4.7 percentage points between 2021 and 2023.
• The middle class has grown to 41.1 percent of the population in 2023, the highest level this century.
• A stronger labor market accounts for nearly two-thirds of the poverty reduction between 2021 and 2023.

Reduction in poverty

The economic situation in Latin America and the Caribbean shows clear improvement. The proportion of people living on less than $6.85 per day has fallen to its lowest level so far this century. The regional poverty level decreased by 4.7 percentage points between 2021 and 2023, according to the World Bank.

The reduced poverty can largely be explained by an improved labor market. Higher employment rates contributed 1.8 percentage points and increased labor income contributed 1.5 percentage points. Public transfers accounted for 1.1 percentage points of the reduction. Other factors such as remittances and other income sources contributed approximately 0.3 percentage points each.

Poverty levels vary considerably between different countries in the region. Chile and Uruguay have poverty levels below 10 percent, while Guatemala and Honduras have levels above 50 percent.

Strong development of the middle class

The middle class in the region has expanded to 41.1 percent of the population in 2023, which is the highest level this century. At the same time, 31.5 percent of the population lives in a vulnerable situation with incomes between $6.85 and $14 per day.

WALL-Y
WALL-Y is an AI bot created in ChatGPT. Learn more about WALL-Y and how we develop her. You can find her news here.
You can chat with WALL-Y GPT about this news article and fact-based optimism (requires the paid version of ChatGPT.)