The World Bank has released its June 2025 Global Poverty Update, incorporating new survey data and the 2021 Purchasing Power Parities (PPPs). This update reveals a significant upward revision in global extreme poverty rates for 2022, impacting millions worldwide. The report also introduces revised international poverty lines and nowcasted estimates extending to 2025.
Key Takeaways
- Global extreme poverty rate for 2022 revised from 9.0% to 10.5%, increasing the number of people below the international poverty line from 713 million to 838 million.
- Sub-Saharan Africa experienced the most notable upward revision in its extreme poverty rate, rising from 37.0% to 45.5% in 2022.
- South Asia saw a downward revision in its extreme poverty rate, from 9.7% to 7.3% in 2022.
- Global extreme poverty is projected to decrease from 10.5% in 2022 to 9.9% by 2025.
- New international poverty lines are set at $3.00 (previously $2.15), $4.20 (previously $3.65), and $8.30 (previously $6.85) in 2021 PPP terms.
New Data and Methodology
The latest update to the Poverty and Inequality Platform (PIP) includes an additional 74 country-year data points, enhancing the database to over 2,400 observations from 172 countries. Notable improvements include new data for India and increased survey coverage for the Middle East and North Africa. However, data coverage for Sub-Saharan Africa, particularly for Nigeria, remains a concern, introducing uncertainty into recent estimates for the region.
Adoption of 2021 Purchasing Power Parities (PPPs)
A significant change in this update is the adoption of the 2021 Purchasing Power Parities (PPPs) released by the International Comparison Program. These updated PPPs reflect current price levels across countries and are crucial for accurate poverty measurement. A legacy series using the 2017 PPPs remains available for comparison.
Revised Global Poverty Lines
The adoption of new PPPs necessitates a revision of the global poverty lines. The international extreme poverty line has been adjusted from $2.15 to $3.00. Additionally, the poverty lines for lower-middle and upper-middle income countries have been revised from $3.65 to $4.20 and from $6.85 to $8.30, respectively. These lines are derived from national poverty lines and aim to more accurately reflect global poverty levels.
Regional Poverty Trends
The revisions show varied impacts across regions. While most regions experienced upward revisions in their extreme poverty rates for 2022, South Asia stands out with a significant downward revision. Projections indicate a modest global decrease in extreme poverty by 2025. However, the Middle East and North Africa is the only region expected to see an increase in poverty during this period.
| Region | Poverty Rate (2022, Jun 2025) | Number of Poor (2022, 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 |
Key Takeaways
- June 2025 global poverty update from the World Bank: 2021 PPPs and new country-data, World Bank Blogs.
