Misery and poverty reach the lowest level in Brazil's history, IBGE reports
Misery and poverty reach the lowest level in Brazil's history, IBGE reports .      With the expansion of social programs, the proportion of Brazilians living in extreme poverty has dropped to 4.4%, although 9.5 million people remain in this situation. In poverty conditions, there are 59 million, with the decline attributed to improvements in employment Poverty and extreme poverty in Brazil hit their lowest levels in 2023 since the historical series began in 2012. For the first time, extreme poverty dropped below 5%, reaching 4.4%, which equates to 9.5 million people. Furthermore, 8.7 million Brazilians moved out of poverty, reducing this group to 59 million, the smallest number recorded in over a decade.
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Poverty and extreme poverty in Brazil hit their lowest levels in 2023 since the historical series began in 2012. For the first time, extreme poverty dropped below 5%, reaching 4.4%, which equates to 9.5 million people. Furthermore, 8.7 million Brazilians moved out of poverty, reducing this group to 59 million, the smallest number recorded in over a decade.

The information is included in the Social Indicators Summary, a study released by the Brazilian Institute of Geography and Statistics (IBGE) on Wednesday. The data pertains to the year 2023. Following the data release, Finance Minister Fernando Haddad celebrated the reduction in extreme poverty.

According to economist Marcelo Neri, director of the Social Policy Center at the Getulio Vargas Foundation (FGV Social), poverty and extreme poverty are at their lowest levels in Brazil's history. Neri measures these indicators from data available since 1976, using a threshold of R$307 per person to define extreme poverty.

The expansion of social programs, primarily Bolsa Família, helped reduce extreme poverty from 5.9% to 4.4% between 2022 and 2023, according to the IBGE. In other words, from 12.6 million people, 3.1 million people emerged from extreme poverty in one year.

Nevertheless, there are 9.5 million Brazilians living in extremely precarious conditions, with incomes below R$209 per month or US$2.15 per person per day, an international line used to measure extreme poverty.

The international poverty line considers individuals with a per capita income of up to $6.85 per day - in Brazil, equivalent to R$665 per month.

Labor market eased poverty

The IBGE attributes the reduction in poverty to improvements in the labor market. The decrease in extreme poverty was only possible due to the strengthening of social programs, with Bolsa Família having a more significant effect on the most vulnerable.

At the end of 2022, on the eve of the elections, former President Jair Bolsonaro increased the then Auxílio Brasil to R$600, with the expectation that the benefit would return to R$400 in 2023. However, in January, the newly elected President Luiz Inácio Lula da Silva maintained the value at R$600.

In a simulation without social benefits, poverty would continue to decline due to job growth, but extreme poverty would have increased in 2023 without the support of social assistance policies.

— The dynamism of the labor market is more important for reducing poverty, while social benefit payments are crucial for extreme poverty — summarizes IBGE analyst André Simões.

Single mother Sheila dos Santos Silva, 31, lives in the Vila Ruth community in São João Meriti with four of her nine children: the twins Benjamim and Aryela, aged one and a half, Nicole, 14, and Isabel, 5. To support them, she relied only on help from others and odd jobs as a hairdresser and cleaner. About a year ago, she began receiving R$950 from Bolsa Família (the basic R$600 plus additional amounts for children), which helped change her situation somewhat.

— We used to live on charity, ate whatever we were given, and couldn't afford rent. Now (with income distribution program inclusion), the children's diet has improved, and I managed to rent a small house for R$450 — Sheila explains.

Despite improved living conditions, she still needs to work outside to make ends meet at the end of the month. According to Sheila, hairdressing and cleaning services in the neighborhood add, on average, R$300 to her income.

Poverty around Nova Iguaçu

Most Brazilians living below the poverty line in 2023 resided in the North and Northeast regions, especially in the so-called Metropolitan Arcs. In the Purus River Valley (AM), 66% of the population lived in poverty.

Other areas with high rates included the Litoral and Baixada Maranhense, with 63.8%, and the Metropolitan Area of Manaus (AM), with 62.3%. These rates are well above the national average of 27.4%.

Regions around capitals, such as Cuiabá (MT), Brasília (DF), and Rio de Janeiro (RJ), also have high poverty rates. In Cuiabá, it reaches 29.9%. In the integrated region of Brasília, the rate is 27.6%.

In Rio de Janeiro, the Metropolitan Arc of Nova Iguaçu stands out, with 33.9% of the population living in poverty. The classification by geographic stratum reveals regional inequality, which can be obscured in state comparisons.

Poverty and misery in the country also vary by race, gender, and age. They affect black and mixed-race individuals (6%) more than whites (2.6%), with a nearly threefold higher rate. In general poverty terms, 35.5% of black people and 30.8% of mixed-race individuals live below the poverty line, compared to 17.7% of whites.

Women also face higher poverty proportions, with 28.4% living in these conditions compared to 26.3% of men.

Among children up to 14 years old, 7.3% were extremely poor, and 44.8% were poor in 2023. This is more than double the rates among those aged 60 or older, where the percentages were 2% in extreme poverty and 11.3% in poverty. Historically, poverty among the elderly is lower due to the Benefício de Prestação Continuada (BPC), which guarantees minimum assistance to this population.

Weight of social programs

The research highlights the significance of social programs on the income of the most vulnerable families. In households earning up to a quarter of the minimum wage (around R$325), social benefits - such as Bolsa Família or BPC - accounted for more than half (57%) of family income in 2023. Across all households, this share is just 3.7%.

— Labor market dynamism influences incomes, but in a more specific context, work has a smaller effect on the income composition of these households — observes Simões.

The weight of social benefits in the income of the poorest families doubled in a decade, reaching 42% in 2022, compared to just 23.5% ten years earlier. In 2023, the increased aid pushed this figure to 57%.

The translation of this text into english was carried out by Project Irineu, O GLOBO's initiative to develop artificial intelligence tools. Here is the link to the original report.
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     With the expansion of social programs, the proportion of Brazilians living in extreme poverty has dropped to 4.4%, although 9.5 million people remain in this situation. In poverty conditions, there are 59 million, with the decline attributed to improvements in employment Poverty and extreme poverty in Brazil hit their lowest levels in 2023 since the historical series began in 2012. For the first time, extreme poverty dropped below 5%, reaching 4.4%, which equates to 9.5 million people. Furthermore, 8.7 million Brazilians moved out of poverty, reducing this group to 59 million, the smallest number recorded in over a decade.
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The information is included in the Social Indicators Summary, a study released by the Brazilian Institute of Geography and Statistics (IBGE) on Wednesday. The data pertains to the year 2023. Following the data release, Finance Minister Fernando Haddad celebrated the reduction in extreme poverty.
According to economist Marcelo Neri, director of the Social Policy Center at the Getulio Vargas Foundation (FGV Social), poverty and extreme poverty are at their lowest levels in Brazil's history. Neri measures these indicators from data available since 1976, using a threshold of R$307 per person to define extreme poverty.
The expansion of social programs, primarily Bolsa Família, helped reduce extreme poverty from 5.9% to 4.4% between 2022 and 2023, according to the IBGE. In other words, from 12.6 million people, 3.1 million people emerged from extreme poverty in one year.

Nevertheless, there are 9.5 million Brazilians living in extremely precarious conditions, with incomes below R$209 per month or US$2.15 per person per day, an international line used to measure extreme poverty.
In english: Read more stories on O GLOBO's website
The international poverty line considers individuals with a per capita income of up to $6.85 per day - in Brazil, equivalent to R$665 per month.
Labor market eased poverty
The IBGE attributes the reduction in poverty to improvements in the labor market. The decrease in extreme poverty was only possible due to the strengthening of social programs, with Bolsa Família having a more significant effect on the most vulnerable.
At the end of 2022, on the eve of the elections, former President Jair Bolsonaro increased the then Auxílio Brasil to R$600, with the expectation that the benefit would return to R$400 in 2023. However, in January, the newly elected President Luiz Inácio Lula da Silva maintained the value at R$600.
In a simulation without social benefits, poverty would continue to decline due to job growth, but extreme poverty would have increased in 2023 without the support of social assistance policies.
— The dynamism of the labor market is more important for reducing poverty, while social benefit payments are crucial for extreme poverty — summarizes IBGE analyst André Simões.
Single mother Sheila dos Santos Silva, 31, lives in the Vila Ruth community in São João Meriti with four of her nine children: the twins Benjamim and Aryela, aged one and a half, Nicole, 14, and Isabel, 5. To support them, she relied only on help from others and odd jobs as a hairdresser and cleaner. About a year ago, she began receiving R$950 from Bolsa Família (the basic R$600 plus additional amounts for children), which helped change her situation somewhat.
— We used to live on charity, ate whatever we were given, and couldn't afford rent. Now (with income distribution program inclusion), the children's diet has improved, and I managed to rent a small house for R$450 — Sheila explains.
Despite improved living conditions, she still needs to work outside to make ends meet at the end of the month. According to Sheila, hairdressing and cleaning services in the neighborhood add, on average, R$300 to her income.
Poverty around Nova Iguaçu
Most Brazilians living below the poverty line in 2023 resided in the North and Northeast regions, especially in the so-called Metropolitan Arcs. In the Purus River Valley (AM), 66% of the population lived in poverty.
Other areas with high rates included the Litoral and Baixada Maranhense, with 63.8%, and the Metropolitan Area of Manaus (AM), with 62.3%. These rates are well above the national average of 27.4%.

Regions around capitals, such as Cuiabá (MT), Brasília (DF), and Rio de Janeiro (RJ), also have high poverty rates. In Cuiabá, it reaches 29.9%. In the integrated region of Brasília, the rate is 27.6%.
In Rio de Janeiro, the Metropolitan Arc of Nova Iguaçu stands out, with 33.9% of the population living in poverty. The classification by geographic stratum reveals regional inequality, which can be obscured in state comparisons.
Poverty and misery in the country also vary by race, gender, and age. They affect black and mixed-race individuals (6%) more than whites (2.6%), with a nearly threefold higher rate. In general poverty terms, 35.5% of black people and 30.8% of mixed-race individuals live below the poverty line, compared to 17.7% of whites.
Women also face higher poverty proportions, with 28.4% living in these conditions compared to 26.3% of men.
Among children up to 14 years old, 7.3% were extremely poor, and 44.8% were poor in 2023. This is more than double the rates among those aged 60 or older, where the percentages were 2% in extreme poverty and 11.3% in poverty. Historically, poverty among the elderly is lower due to the Benefício de Prestação Continuada (BPC), which guarantees minimum assistance to this population.
Weight of social programs
The research highlights the significance of social programs on the income of the most vulnerable families. In households earning up to a quarter of the minimum wage (around R$325), social benefits - such as Bolsa Família or BPC - accounted for more than half (57%) of family income in 2023. Across all households, this share is just 3.7%.
— Labor market dynamism influences incomes, but in a more specific context, work has a smaller effect on the income composition of these households — observes Simões.
The weight of social benefits in the income of the poorest families doubled in a decade, reaching 42% in 2022, compared to just 23.5% ten years earlier. In 2023, the increased aid pushed this figure to 57%.
The translation of this text into english was carried out by Project Irineu, O GLOBO's initiative to develop artificial intelligence tools. Here is the link to the original report.
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Misery and poverty reach the lowest level in Brazil's history, IBGE reports