Poverty on the Decline in Latin America as Brazil Leads the Charge

In 2023, Latin America's poverty rate fell to its lowest in 33 years, driven largely by Brazil's improvements, according to ECLAC. However, the region still faces significant inequality, with over 170 million affected by poverty. Effective social protection systems are crucial to tackling inequality and boosting social cohesion.

Latin America experienced a significant drop in poverty levels in 2023, hitting a 33-year low, as reported by the United Nations' Economic Commission for Latin America and the Caribbean (ECLAC). Brazil emerged as a key player in this positive trend, despite the region still grappling with severe inequality.

The ECLAC report highlighted the persistent issues of high inequality, limited social mobility, and weak social cohesion in Latin America, exacerbated by insufficient social policies and protection systems. It emphasized that poverty still affects over 170 million people, particularly in countries like Haiti, Nicaragua, and Honduras.

The report noted a 1.5 percentage point decline in poverty to 27.3% of the population. Extreme poverty also saw a slight decrease to 10.6%. However, excluding Brazil, the region's poverty rate would still be at 28.4%, close to 2022 figures. Strengthening social protection systems is essential to addressing inequality and fostering social cohesion.

(With inputs from agencies.)