The World Bank has released its June 2025 Global Poverty Update, revealing significant revisions to poverty estimates. The update incorporates new country-specific survey data, including crucial updates from India, and adopts the 2021 Purchasing Power Parities (PPPs). These changes have led to an upward revision of global extreme poverty rates for 2022.
Key Takeaways
- Global extreme poverty rate for 2022 revised from 9.0% to 10.5%.
- Number of people living below the international poverty line increased from 713 million to 838 million in 2022.
- Sub-Saharan Africa saw the most significant upward revision in its extreme poverty rate.
- South Asia experienced a downward revision in its extreme poverty rate.
- Global extreme poverty is projected to decrease to 9.9% by 2025.
Revised Poverty Estimates
The latest update to the Poverty and Inequality Platform (PIP) includes nowcasted estimates up to 2025. The adoption of the 2021 PPPs, released by the International Comparison Program (ICP) in May 2024, alongside new survey data, has necessitated a re-estimation of global poverty lines. The international extreme poverty line has been adjusted from $2.15 to $3.00.
Consequently, the global extreme poverty rate for 2022 has been revised upwards to 10.5 percent, translating to an increase of approximately 125 million individuals living below the international poverty line, bringing the total to 838 million. This revision is largely attributed to updated national poverty lines and the new PPPs.
Regional Impacts
Most regions have seen upward revisions in their poverty rates for 2022. Sub-Saharan Africa experienced the most substantial increase, with its extreme poverty rate rising from 37.0 percent to 45.5 percent. Conversely, South Asia saw a notable downward revision, from 9.7 percent to 7.3 percent.
Table 1: Global and Regional Extreme Poverty in 2022 (Comparison of June 2025 and September 2024 Vintages)
| Region | Poverty Rate (%) (Jun 2025) | Number of Poor (million) (Jun 2025) |
|---|---|---|
| East Asia and Pacific | 2.5 | 54.0 |
| Europe and Central Asia | 1.1 | 5.3 |
| Latin America & Caribbean | 5.2 | 33.6 |
| Middle East and North Africa | 8.5 | 37.1 |
| Other High Income countries | 0.7 | 7.8 |
| South Asia | 7.3 | 141.5 |
| Sub-Saharan Africa | 45.5 | 558.8 |
| World Total | 10.5 | 838.0 |
Future Projections
Despite the upward revisions for past years, the World Bank projects a modest decline in the global extreme poverty rate. Based on nowcasted estimates, the rate is expected to decrease from 10.5 percent in 2022 to 9.9 percent by 2025. South Asia is anticipated to continue its significant decline in extreme poverty, while the Middle East and North Africa is the only region projected to experience an increase in poverty during this period.
Key Takeaways
- June 2025 global poverty update from the World Bank: 2021 PPPs and new country-data, World Bank Blogs.
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