Data Insights

Bite-sized insights on how the world is changing, published every few days.

Poverty

The latest World Bank data counts 125 million more people as living in extreme poverty — but the world has not gotten poorer

A line graph titled "A comparison of World Bank estimates of extreme poverty" illustrates the global number of people living in extreme poverty. The x-axis represents the years from 1990 to 2024, while the y-axis indicates the number of people in billions, ranging from 0 to 2.5 billion. 

Two distinct lines are present: one in dark brown representing the previous estimates using a poverty line of $2.15 per day measured in 2017 prices, and another in blue for the latest estimates utilizing a new poverty line of $3 per day measured in 2021 prices. The brown line trends downward, starting around 2 billion in 1990 and reaching 692 million in 2024. The blue line, starting slightly higher at roughly 2.3 billion, shows a similar decline, reaching 817 million in 2024. The difference between the lines — 125 million — indicates the increase in the estimated number of people living in extreme poverty due to the new measurement criteria. 

The note at the bottom indicates that data has been adjusted for inflation and differences in living costs using international dollars from 2017 and 2021. The data source is cited as the World Bank Poverty and Inequality Platform, and the graph includes a copyright notice for "CC BY."

To track progress towards ending extreme poverty, the United Nations relies on World Bank estimates of the number of people living below a poverty threshold called the “International Poverty Line” (IPL).

In June 2025, the World Bank announced a major change to this line, raising it significantly, from $2.15 to $3 per day. As a result, 125 million people who would not have been counted as extremely poor before June are now included.

The increased IPL and the higher poverty estimates are due to a mix of overlapping changes, which we explained in a recent article.

Two things are particularly important to know.

First, the higher estimates of extreme poverty reflect a higher poverty threshold, not that the world is poorer. In fact, the latest data shows that incomes among the world’s poorest are actually higher than previously estimated.

Second, the overall message is the same whether we look at the new or previous estimates. Progress in recent decades has been enormous: well over a billion people have escaped extreme poverty since 1990. But this progress has now stalled. Incomes are stagnant in the places where most of the world’s poorest live. Unless this changes, hundreds of millions of people will be stuck in extreme poverty for years to come.

Read our complete explainer on the new International Poverty Line and World Bank poverty data

Extreme poverty has not declined in these four Southern African countries

Chart showing that in Zambia, Malawi, Mozambique, and Madagascar, the majority of people live in extreme poverty and poverty has not declined in the last decades.

Globally, the share of the population living in extreme poverty has declined fast, from 38% in 1990 to 9% in 2024.

Some countries, however, have not made any progress against poverty. Four of them are in Southeast Africa, as shown in the chart. In Zambia, Malawi, Mozambique, and Madagascar, most people still live in extreme poverty, and this hasn’t changed in decades.

Poverty has remained high because these economies have not achieved economic growth in recent decades.

In the 1990s, most extremely poor people lived in countries that went on to have strong economic growth. Today, however, a substantial share of the poorest people live in economies that have not grown in decades. Based on current trends, this means that the world cannot expect an end to extreme poverty.

Whether or not the economies that are home to the poorest people in the world start to grow will determine whether the world ends extreme poverty.

I’ve written more about this in “The history of the end of poverty has just begun”, where I explain why economic growth is key to ending poverty →

One in six people live in Sub-Saharan Africa, but it accounts for two-thirds of global extreme poverty

This visual representation displays two vertical bar graphs side by side. The left graph indicates the share of the global population, showing that Sub-Saharan Africa is home to 16% of the world's total population, while the majority resides in a section labeled "Rest of the World." The right graph illustrates the share of people living in extreme poverty, defined as those living on less than $2.15 per day. Here, Sub-Saharan Africa accounts for 67% of the global population living in extreme poverty, contrasting sharply with the much smaller percentage attributed to the Rest of the World. 

Text on the left states, "16% of all people live in Sub-Saharan Africa," and an arrow points towards it. The text on the right concludes with, "...but 67% of all people in extreme poverty live there." The infographic is attributed to Our World in Data, with a footer noting the data is sourced from the World Bank for the year 2024. The image is licensed under CC BY.

Every twelfth person in the world still lives in extreme poverty. That means surviving on less than $2.15 per day (adjusted for differences in living costs between countries).

For many, that means struggling to afford nutritious food, not being able to afford basic healthcare, safe sanitation, or electricity.

So, where do most people in extreme poverty live? The chart shows that Sub-Saharan Africa, which is home to just 16% of the global population, now accounts for 67% of people living in extreme poverty.

This distribution is very different from 25 years ago. In 2000, Asia was home to most of the world’s population living in extreme poverty. However, strong economic growth in recent decades has led to steep reductions in poverty. Progress in Sub-Saharan Africa has been much slower.

If we're serious about ending extreme poverty worldwide, supporting economic development in Sub-Saharan Africa has to be a top priority. The recent progress achieved by some African countries reminds us that meaningful change is within reach.

Explore more data on extreme poverty

Brazil, Venezuela, and Mexico account for 59% of people living in poverty in Latin America

A bar chart illustrating the number of people living in poverty in Latin America in 2023. The chart highlights that Brazil, Venezuela, and Mexico account for 59% of the population living on less than $3.65 per day, totaling 52.2 million individuals. Brazil is represented by the longest bar, showing 23.5 million people, followed by Venezuela with 15.5 million and Mexico with 13.2 million. Other countries displayed include Colombia (10.2 million), Guatemala (5.8 million), Peru (4.3 million), and several others, with the smallest bars indicating very few affected, such as Uruguay (0.1 million) and Costa Rica (0.3 million). The chart provides a clear visual representation of poverty levels across the region.

Data source: Chang, Evans and Rivas Herrera (2024), Inter-American Development Bank. Note: Data in international dollars at 2017 prices, adjusted for inflation and differences in living costs between countries. The graph is licensed under CC BY.

A recent report by the Inter-American Development Bank (IDB) highlights the high concentration of poverty in Latin America. Across the region, around 89 million people — more than one in seven — live on less than $3.65 a day.

Poverty can be measured using various poverty lines; here, we’re looking at the $3.65 line, which the World Bank uses to define poverty in lower-middle-income countries.

The chart shows that 52.2 million people living under this line are in just three countries — Brazil, Venezuela, and Mexico — representing 59% of the region’s total.

As the report explains, while Brazil and Mexico don’t have the highest poverty rates, their large populations mean they have the largest number of people living below this line. Venezuela, in contrast, has a smaller population but one of the region’s highest poverty rates.

Identifying where poverty is most concentrated can help target efforts to reduce and eliminate it.

You can explore more data on poverty, including different poverty lines and world regions, in our Poverty Data Explorer

China reduced extreme poverty rapidly, but Indonesia hasn't been far behind

A line graph comparing the reduction of extreme poverty in China and Indonesia from 1984 to 2023. The y-axis represents the percentage of people living in extreme poverty, ranging from 0% to 80%. The x-axis displays the years, from 1984 to 2023. 

In China, the blue line starts at 82% in 1984, showing a steep decline over the years, particularly after the year 2000, and reaching 1.8% in 2023. A notable spike is observed around 1998, correlating with the Indonesian riots.

In Indonesia, the red line starts at 74% in 1984, with gradual decreases throughout the years, and also reaching 1.8% in 2023, though it consistently remains slightly higher than the Chinese line. 

The title indicates that while China has made significant strides in reducing extreme poverty, Indonesia has also made noteworthy progress.

China is often the poster child for rapid reductions in poverty, and for good reason: in the early 1980s, over 90% of its population lived in extreme poverty, but by the early 2020s, that number had dropped to nearly zero.

Some people assume that China is the only reason global extreme poverty has declined. But that’s wrong: many other countries have seen dramatic reductions in poverty. Indonesia is one clear example; it’s shown alongside China on the chart.

In 1984, three-quarters of Indonesians lived on less than $2.15 per day. By 2023, this had fallen to less than 2%. While it didn’t quite match China’s decline, it has still been impressive. The number of people living in extreme poverty has fallen from 120 million to 5 million.

Note that the international poverty line is extremely low, defined as people living on less than $2.15 per day. But Indonesia has also made progress measured by higher poverty lines.

Explore progress against poverty across the world in our data explorer

In many countries, more than half of the population faces poverty in multiple dimensions

A world map illustrates the share of the population living in multidimensional poverty, defined as deprivation in health, education, and living standards. The map employs varying shades of purple and pink to indicate the percentage of the population affected by multidimensional poverty in different countries. 
Countries are marked with a gradient from light pink (representing 0% of the population living in multidimensional poverty) to dark purple (representing 100%). For some countries, specific percentages are highlighted, such as 91% in Niger, 84% in Chad, and 80% in the Central African Republic. Areas with no data are shown in diagonal stripes. The footer notes the data comes from Alkire, Kanagaratnam, and Suppa (2024) as part of the Global Multidimensional Poverty Index (MPI) 2024. It mentions that the estimates are based on recent household survey data from 2011 to 2023, but for 62% of countries, the data refers to the period after 2018. The chart is published by Our World in Data.

The experience of poverty goes far beyond having no or low income. Unfortunately, still in many countries today, a large share of people experience severe poverty in many areas of life, such as health, education, and living standards.

To capture this broader reality, researchers from the Oxford Poverty and Human Development Initiative and the UN Development Programme developed the global Multidimensional Poverty Index. This group of indicators measures poverty across essential areas of well-being, capturing whether people are undernourished, whether they lost a child, and lack access to education or basic facilities like clean water or electricity.

The map shows the share of the population in each country living in multidimensional poverty, highlighting where households face overlapping deprivations.

In countries across South America and some in East Asia, this share is less than 10%. But in many countries in Sub-Saharan Africa, more than half of the people experience these extreme conditions. The share even exceeds 4 in 5 people in Niger (91%), Chad (84%), and the Central African Republic (80%).

These figures are based on data from over 100 countries drawn from household surveys conducted between 2011 and 2023.

Read more on our article: Beyond income: understanding poverty through the Multidimensional Poverty Index

Extreme poverty, though lower than in the past, is still very high in Sub-Saharan Africa

A line chart titled "Share of population living in extreme poverty." The chart tracks the percentage of the population living below the International Poverty Line of $2.15 per day in Sub-Saharan Africa and East Asia and Pacific from 1990 to 2022. The y-axis ranges from 0% to 60%, and the x-axis ranges from 1990 to 2022. Two lines are shown: one for Sub-Saharan Africa (in red) starting at around 55% in 1990 and gradually declining to around 35% by 2022; the other for East Asia and Pacific (in brown) starting at about 60% in 1990 and dropping steeply to around 2% by 2022. The data source is the World Bank Poverty and Inequality Platform (2024). A note mentions the data is expressed in international dollars at 2017 prices. The chart is produced by Our World in Data.

The United Nations’ first Sustainable Development Goal is to “end poverty in all its forms everywhere” by 2030. The world is still very far away from this goal.

The data from the World Bank shows that in 1990, 55% of the population in Sub-Saharan Africa and 65% in East Asia and the Pacific lived in these conditions — broadly similar figures. But the most recent figures were 37% in Sub-Saharan Africa and 1% in East Asia and the Pacific.

The United Nations focuses on “extreme poverty” in its Sustainable Development Goals agenda. They define this as living with less than $2.15 per day. This figure represents what $2.15 could buy you in the United States in 2017 prices; it is adjusted for inflation and cost of living differences between countries.

Explore this data

Was the global decline of extreme poverty only due to China?

Line chart showing the decrease in the share in extreme poverty for both the world and the world without considering China

The share of the world population living in extreme poverty has never declined as rapidly as in the past three decades.

The decline in China was particularly fast, and given that one in six people in the world live there, we’re often asked whether the decline in global poverty was only due to the decline in China.

The chart shows the data that answers this question. In red, we see the global decline. In green, we see the decline if we exclude China from the data. In the world outside of China, 29% lived in extreme poverty in 1990 — by 2022, this share was down to 11%.

The large economic growth that lifted 800 million Chinese people out of extreme poverty since 1990 was a major contributor to the global decline in poverty. But the non-Chinese world also achieved a very large reduction.

It is not true that the global decline in poverty was only due to China. Extreme poverty has declined in China and the rest of the world.

National poverty lines differ widely between countries

Scatter plot showing national poverty line (y axis) vs. GDP per capita (x axis)

Global economic inequality is very large. We see this in the differences between average incomes across countries. In this chart, average income is plotted along the horizontal axis and measured by GDP per capita. While the average income is $1,750 in Ethiopia, in Switzerland it’s around $69,000 — this is after adjusting for differences in cost of living.

Because standards of living are so different, richer countries set their own national poverty lines much higher, to measure poverty in a way that is informative and relevant to their citizens' incomes.

The scatter plot captures this insight. As we can see, richer countries (higher GDP per capita along the horizontal axis) tend to set much higher national poverty lines (higher position along the vertical axis).

In Switzerland, a person is considered in poverty if they live on less than the equivalent of roughly $36 per day; in Ethiopia, the national poverty line is around $2 per day.


→ Read more in our page on global poverty. If you are looking for more details on this Data Insight specifically, you can find it in the study on which it is based: Joliffe et al. (2022).

Extreme poverty in China has been almost eliminated — first in urban, then in rural regions

Extreme poverty in China has been almost eliminated — first in rural, then in urban regions

In 1981, 97% of people in the Chinese countryside lived in extreme poverty. Even in cities, it was more than 70%.

Since then, large economic growth has made it possible for hundreds of millions of people in China to leave extreme poverty behind, first in cities and then in the countryside.

By 2020, the share of people living in extreme poverty in both urban and rural areas was below 1%.

Explore this data