Lula effect: poverty drops to lowest level in history

Lula effect: poverty drops to lowest level in history
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Written in ECONOMY he 4/25/2024 · 4:21 pm

The data from the new Continuous National Household Sample Survey (Pnad) indicate that poverty in 2023 fell to the lowest rate since 2012, the beginning of the historical series.

As a result of the resumption of Bolsa Família and social programs under the Lula government, in addition to the reduction in employment and increase in formal work, data show that poverty in Brazil fell by around 4%, reaching 27% of the Brazilian population, in compared to 2022.

More than 8.5 million individuals were lifted out of poverty in 2023 and the decline was widespread, being observed in 26 of the 27 federative units.

The biggest drops occurred in Amapá, Roraima and Amazonas.

Lula and Wellington Dias, Minister of Development and Social Assistance (Photo: Ricardo Stuckert)

“We will continue with the mission of increasingly reducing poverty and fighting hunger in Brazil. In one year, we have already seen important changes in the lives of families, and we continue working to further improve the quality of life of our population”, reinforced the Minister of Development and Social Assistance, Family and Combating Hunger, Wellington Dias.

Income increase

Data released by IBGE last Friday (19), they indicated that the average income of Brazilians broke a record in 2023 and stood at R$1,848 per person per month, an increase of almost 12% compared to the last year of the Bolsonaro government.

The main increases occurred among the richest 10% and the poorest 40%. The return of Bolsa Família guaranteed an increase of 17.6%, while the poorest 5% saw an increase of 38.5% in their earnings.

“The considerable increase in labor income in 2023, compared to the previous year, is due both to the expansion of the employed population and to the increase in average labor income. In 2023, compared to 2022, there were 4.0 million more people employed with income from work. With this expansion, the mass of labor income also exceeded the value of 2019, until then the year with the highest value in the Continuous PNAD series”, explains Gustavo Geaquinto, research analyst, in an IBGE note.

The article is in Portuguese

Brazil

Tags: Lula effect poverty drops lowest level history

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