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Latin America's Poverty Reduction: Progress and Challenges
Latin American poverty has decreased, but inequality persists. ECLAC's report highlights the need for increased investment in social protection.
Spanish
Spain
Economic GrowthLatin AmericaPovertyInequalitySocial Welfare
Economic Commission For Latin America And The Caribbean (Eclac)Cepal
José Manuel Salazar-Xirinachs
- What is the outlook for poverty and extreme poverty in Latin America in 2024?
- While poverty has decreased, extreme poverty remains above the levels recorded a decade ago at 10.6% in 2023. ECLAC projects a slight further decrease in 2024, but with no significant progress regarding extreme poverty.
- What are the main factors contributing to the decrease in poverty in Latin America?
- The decrease in poverty is mainly attributed to increased dependent employment income and non-contributory social protection. However, slow economic growth, low labor market dynamism, and inflation pose challenges to social protection systems.
- How significant is income inequality in Latin America, and what are its implications?
- The Gini index in Latin America remained at 0.452 in 2023, indicating persistent income inequality. One in three households in the lowest income quintile lacks access to social protection, highlighting the need for increased investment in social safety nets.
- What are ECLAC's recommendations for addressing poverty and inequality in the region?
- The Economic Commission for Latin America and the Caribbean (ECLAC) recommends a 1.5%-2.5% of GDP investment in non-contributory social protection to improve conditions. Currently, some countries spend around 0.8% of GDP or 3% of public spending on such programs.
- What is the current poverty rate in Latin America and how does it compare to previous years?
- Poverty in Latin America has decreased to levels similar to those of 2014, reaching 27.3% in 2023, a 1.5 percentage point reduction from the previous year. This is the lowest drop since records began, primarily driven by Brazil's decrease and social protection programs.