The long-term decline in extreme poverty is one of the greatest achievements of the modern global economy. Over the past few decades, hundreds of millions of people have escaped extreme poverty, mainly thanks to economic growth, investment in human capital, better access to healthcare and education, and the gradual integration of developing countries into the global economy. However, this progress should not be taken for granted. Since 2019, the pace of poverty reduction has slowed significantly. The remaining pockets of extreme poverty are increasingly concentrated in countries with weak institutions, ongoing conflicts, and high vulnerability to external shocks.

Key takeaways:

• The share of people living in extreme poverty has fallen from historically very high levels to less than one-tenth of the world’s population, transforming the lives of hundreds of millions of people.
• Since the COVID-19 pandemic, progress has slowed considerably, while the poorest countries remain highly vulnerable to conflict, weak institutions, and external economic shocks.
• The fight against poverty is shifting from a broad global trend to targeted support for Sub-Saharan Africa and other vulnerable regions, where future progress will depend on economic growth, stronger institutions, and investment in human capital.

Analysis – Martin Zeman

The analysis is in PDF under the link below.