July 6, 2020

Extreme poverty in Brazil reaches its highest level since 2012

Extreme poverty in Brazil last year reached its highest level since 2012, with 6.5% of the population, equivalent to 13.5 million people, who had incomes below $ 1.9 per day, reported Wednesday Government.

According to a study by the state Brazilian Institute of Geography and Statistics (IBGE), the percentage of Brazilians in extreme poverty grew slightly compared to 2017, when it was 6.4% of the country's population, estimated at about 200 million people.

That increase, however, established a new ceiling since the beginning of the historical series, in 2012, when the number of Brazilians with monthly incomes below 145 reais (today $ 35.6) was 11.3 million (5, 8%)

In the next two years, Brazil reduced the extreme poverty rates to 4.5%, but as of 2014 they began to grow due to the severe economic crisis that collapsed the gross domestic product (GDP) seven percentage points between 2015 and 2016 and whose effects still hit the country.

The report manager, André Simoes, stressed the need to promote public policies to combat extreme poverty, which affects the most vulnerable and those with less conditions to enter the labor market.

"That group needs major care, which would be, for example, public income distribution policies and to boost the labor market," he explained.

In that regard, he stressed that the current value of government assistance subsidies for the most disadvantaged, such as the Bolsa Familia program, "is not enough to get people out of extreme poverty," and recommended their readjustment.

On the other hand, one million people left the poverty line in 2018 – those living with less than $ 5.5 per day – but a quarter of the Brazilian population still remains in that situation, that is, 52.5 millions of people.

The poverty rate fell from 26.5%, in 2017, to 25.3% in 2018, a percentage still far from that registered five years ago, when it was 22.8%.

Poverty hits mostly the black or mestizo population, which represents 72.7% of Brazil's poor.

This Wednesday's report is related to the one published by the IBGE last month, in which it was found that wage inequality reached its highest level in 2018 since this type of statistics began to be collected, also in 2012.

The richest 1% earned an average monthly income of 27,744 reais (about $ 6,800), while 50% of the less favored earned only 820 reais (about $ 200).

In addition, that richest 1% saw their yields grow 8.4% in 2018, while those of the poorest 5% fell 3.2%, to 153 reais (about $ 37.6) on average per month.

In the last two years, the South American giant has tried a slow and gradual economic recovery with growth of just 1% in 2017 and 2018.

For this year, both economists and the Government expect GDP growth below 1%.

. (tagsToTranslate) extreme (t) poverty (t) Brazil (t) arrives (t) greater

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