Evolution of poverty in Latin America

Poverty is on the rise. According to the latest social panorama report from the Economic Commission for Latin America and the Caribbean (ECLAC), poverty and extreme poverty have increased since 2014. Up until that year, both indicators have been decreasing progressively since 2002, a trend that has inverted during the last few years.

The most recent data show that in 2016, the region’s poor reached up to 186 million (30.7% of the population), while extreme poverty affected 62 million people (10% of the population).

In this context, the report insists on the need to strengthen institutions and active policies that contribute to lessen poverty and extreme poverty, helping avoid economic setbacks. ECLAC advocates for boosting household income through the labor market and social initiatives such as pension benefits and public transfers.

The report alludes to labor policies, provision of public services, social protection systems and poverty reduction policies as some of the most influential factors that directly affect poverty reduction through income distribution. They determine how economic growth could translate into better living conditions for the population.

With the aim of contributing to this growth, the BBVAMF facilitates access to financial products and services to the vulnerable entrepreneurs across the region. These are people who thrive with the surpluses generated by their work, thus improving their lives and of those who surround them.

Briefing Paper
'Social Panorama of Latin America'