Number of Brazilians in extreme poverty rises again after ten years

In 2013, the number of Brazilians living in extreme poverty rose 3.68% from the year before—the first increase since 2003. Figures were released by the Institute for Applied Economic Research (Ipea) after its Ipeadata platform was brought up-to-date, on October 30 and 31.

In absolute numbers, the amount of Brazilians living in extreme poverty went from 10,081,225 in 2012 to 10,452,383 last year. The proportion of extremely poor people climbed up from 5.29% to 5.50% of the general population.

The criteria adopted by Ipea for the definition of extreme poverty are those chosen by the World Health Organization (WHO) and the Food and Agriculture Organization of the United Nations (FAO). Both organizations base their analysis on the estimated price of a set of food items with the amount of calories necessary to feed a person appropriately. The institute assigns different minimum wages to 24 different regions in Brazil, under which individuals are classified as being under the line of extreme poverty.

The population under extreme poverty was also reported by Ipea to expand according to the criteria from the government-launched Brazil Free of Extreme Poverty initiative (“Brasil sem Miséria”). The program regards as extremely poor all those with a monthly income below $30.40. According to these standards, the percentage of people in extreme poverty went up from 3.6% in 2012 to 4% in 2013. It was the first rise since 2004.

Ipea further reports, however, that the population facing poverty—i.e., individuals living in need but not under extreme conditions—was still experiencing a decline last year, according to the criteria chosen by FAO and WHO. The number dropped from 30,350,786 in 2012 to 28,698,598 in 2013, a reduction of 5.44%—or from 15.93% to 15.09% of the population.

For Ipea, the poverty line is twice the value set for the extreme poverty line. According to the standards of Brazil Free of Extreme Poverty program, however, the proportion of poor people mounted from 8.9% to 9% last year.

Translated by Fabrício Ferreira