While the world has lifted over a billion people from the depths of extreme poverty in the last thirty years, the jarring reality that over 700 million of our neighbors still struggle to survive on less than $2.15 a day remains one of our greatest collective challenges.
Key Takeaways
- In 2022, approximately 712 million people worldwide lived in extreme poverty, defined as less than $2.15 per day in 2017 PPP terms, representing 8.7% of the global population
- The global extreme poverty rate fell from 38% in 1990 to 8.5% in 2022, lifting over 1.1 billion people out of poverty during that period
- As of 2023, 9.2% of the world's population, or about 736 million people, live below the international poverty line of $2.15/day
- Sub-Saharan Africa accounts for 67% of the world's extreme poor, with 429 million people below $2.15/day in 2022
- In South Asia, 100 million people lived in extreme poverty in 2022, down from 278 million in 2015
- East Asia and Pacific region had 23 million in extreme poverty in 2022, representing 0.9% of its population
- Global GDP per capita loss due to poverty is estimated at $2.5 trillion annually
- Extreme poverty costs the global economy up to 28% of GDP in affected countries
- In low-income countries, poverty reduces potential GDP growth by 1-2% annually
- 1.1 billion people live in multidimensional poverty, deprived in health, education, living standards
- 644 million multidimensionally poor lack access to sanitation
- 465 million poor suffer clean cooking fuel deprivation
- Extreme poverty rate declined from 36% in 1990 to 10% in 2015, then stagnated
- Between 2013-2023, 160 million escaped extreme poverty despite COVID setback
- MPI poor fell by 450 million from 2000-2022, fastest in South Asia
Global poverty has sharply declined but progress has slowed, leaving hundreds of millions in hardship.
Economic Impacts
- Global GDP per capita loss due to poverty is estimated at $2.5 trillion annually
- Extreme poverty costs the global economy up to 28% of GDP in affected countries
- In low-income countries, poverty reduces potential GDP growth by 1-2% annually
- Multidimensional poverty correlates with 15-20% lower labor productivity globally
- The poorest 40% of population grows 2% slower in income than average in unequal societies
- COVID-19 pushed 97 million more into extreme poverty, costing $1 trillion in output
- Each year of schooling for the poor increases earnings by 10%, reducing poverty traps
- Health shocks cause 20% of households in poor countries to fall back into poverty
- Inequality-adjusted poverty reduction is 50% slower than unadjusted rates
- Poor households spend 50-70% of income on food, vulnerable to price shocks
- Access to electricity lifts 1.5 million out of poverty per 1% increase in access
- Microfinance reaches 140 million clients, reducing poverty by 10 points in some areas
- Climate change could push 100 million more into poverty by 2030 via crop losses
- Female poverty rates are 10% higher than males in many regions due to wage gaps
- Remittances reduce poverty by 6% in recipient households globally
- Digital financial services cut poverty by 2% via inclusion of 1.7 billion unbanked
Economic Impacts Interpretation
It is a grim irony that we collectively spend trillions in lost economic output to maintain a vast global system of deprivation, when the investments needed to end it—in education, health, inclusion, and climate resilience—are proven to pay for themselves many times over.
Global Overview
- In 2022, approximately 712 million people worldwide lived in extreme poverty, defined as less than $2.15 per day in 2017 PPP terms, representing 8.7% of the global population
- The global extreme poverty rate fell from 38% in 1990 to 8.5% in 2022, lifting over 1.1 billion people out of poverty during that period
- As of 2023, 9.2% of the world's population, or about 736 million people, live below the international poverty line of $2.15/day
- Between 2015 and 2019, global poverty reduction slowed to an average of 7.5 million people escaping extreme poverty annually
- In 2022, the number of people in extreme poverty was equivalent to the combined population of the US, Brazil, and Indonesia
- Global poverty headcount ratio at $2.15 a day (2017 PPP) (% of population) stood at 8.9% in 2021
- From 2013-2023 estimates show 689 million in extreme poverty, with a rate of 8.7%
- The Sustainable Development Goal of ending extreme poverty by 2030 is off-track, with projections showing 575 million still in poverty by then
- In 2019 pre-COVID, 648 million people were in extreme poverty globally
- Global Multidimensional Poverty Index (MPI) covers 1.3 billion people in acute poverty across 111 countries in 2023
Global Overview Interpretation
While we have impressively halved the poverty rate since the 1990s and lifted over a billion people, the sobering reality is that, today, the equivalent of America, Brazil, and Indonesia combined still lives on less than $2.15 a day, and we're falling short of our 2030 goal to end this crisis.
Multidimensional Poverty
- 1.1 billion people live in multidimensional poverty, deprived in health, education, living standards
- 644 million multidimensionally poor lack access to sanitation
- 465 million poor suffer clean cooking fuel deprivation
- 400 million poor children under 5 are malnourished (stunting)
- 234 million poor lack electricity access
- MPI intensity averages 44.3%, meaning poor experience 44% of deprivations
- 50% of multidimensionally poor live in just 5 countries: India, Pakistan, Ethiopia, Nigeria, DR Congo
- Rural areas have 83% of MPI poor vs 18% urban
- Children under 18 comprise 67% of MPI poor
- Nutrition deprivation affects 85% of MPI poor households
- 350 million poor lack improved drinking water
- Education deprivations in years of schooling affect 48% of poor
- Housing materials deprivation impacts 57% of MPI poor
- Assets deprivation (no radio/TV/bike/car etc.) in 62% of poor households
- MPI poor rate in South Asia is 21.1% vs SSA 29.6% in 2023
Multidimensional Poverty Interpretation
Behind these staggering numbers—where half the world's poor crowd into five nations, children bear two-thirds of the burden, and rural areas hold the crushing majority—lies a global portrait not just of scarcity, but of systemic deprivation across health, home, and hope.
Regional Statistics
- Sub-Saharan Africa accounts for 67% of the world's extreme poor, with 429 million people below $2.15/day in 2022
- In South Asia, 100 million people lived in extreme poverty in 2022, down from 278 million in 2015
- East Asia and Pacific region had 23 million in extreme poverty in 2022, representing 0.9% of its population
- Latin America and Caribbean saw extreme poverty at 3.8% or 25 million people in 2022
- Middle East and North Africa had 50 million in extreme poverty in 2022, up due to conflicts
- In Europe and Central Asia, extreme poverty affected 5.2 million people or 1.3% in 2022
- Sub-Saharan Africa's poverty rate is 35% at $2.15/day, with projections to 24% by 2030
- South Asia's extreme poverty share dropped to 5.9% in 2022 from 14.5% in 2015
- In conflict-affected regions like Fragile and Conflict States, 40% of extreme poor reside
- East Asia reduced extreme poverty from 29% in 1990 to under 1% in 2022
- Poverty in Latin America at upper-middle-income line ($6.85/day) affects 27% or 172 million in 2022
- MENA region's poverty rate doubled to 11.2% between 2019-2022 due to crises
- Europe's poverty rate at $6.85/day is low at 2.5%, but rising in some areas
- SSA hosts 77% of multidimensionally poor children under 10
- In India, 234 million escaped multidimensional poverty between 2013-2022
- Nigeria has 87 million in extreme poverty, the highest nationally in 2022
- Yemen's poverty rate exceeds 80% due to conflict
- Pakistan's extreme poverty at 5.4% or 12 million in 2022
- Ethiopia's 68% poverty rate at national line in 2023
Regional Statistics Interpretation
Sub-Saharan Africa carries an unconscionable two-thirds of the world's extreme poverty burden, a stark and stubborn fact that dims the genuine progress celebrated elsewhere.
Trends and Progress
- Extreme poverty rate declined from 36% in 1990 to 10% in 2015, then stagnated
- Between 2013-2023, 160 million escaped extreme poverty despite COVID setback
- MPI poor fell by 450 million from 2000-2022, fastest in South Asia
- COVID added 70-95 million to extreme poor in 2020, reversing 3 years progress
- By 2030, extreme poverty projected at 7.3% or 622 million, mostly in SSA
- China lifted 800 million from poverty since 1978, key to global decline
- India reduced extreme poverty from 22% in 2011 to 10% in 2019
- SSA poverty rate rose from 27% to 35% 2015-2022 due to population growth
- Global poverty at $3.65/day affects 1.6 billion, declining slowly
- Female-headed households saw poverty decline 11% faster than male-headed 2000-2020
- Child poverty (under 18) at extreme line down 50% since 1990 to 333 million
- Access to clean water improved for 2.2 billion since 2000, aiding poverty reduction
- Global hunger affects 735 million in 2022, up from 613 million pre-COVID
- Electricity access rose to 90% globally by 2022 from 75% in 2000
- Stunting in children fell from 26% to 22% 2000-2022, but 149 million affected
Trends and Progress Interpretation
The fight against global poverty has been a story of remarkable, yet shockingly fragile, progress—it’s a race where for every two steps humanity takes forward on the strength of places like China and India, a crisis like COVID or the relentless pressure in Sub-Saharan Africa threatens to shove us one step back.
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