A new poverty line shifted the World Bank's poverty data. What changed and why?
13 days ago
- #World Bank
- #poverty
- #global development
- The World Bank increased its extreme poverty line from $2.15 to $3 per day in June 2025, adding 125 million more people to the count of those living in extreme poverty.
- The change reflects inflation adjustments and updates to national poverty lines in low-income countries, not an actual increase in global poverty.
- Global incomes among the poorest have risen, with the bottom 10% seeing a 16% real-term increase in income, but the poverty line increased even more significantly.
- The new poverty line is based on the median national poverty line of low-income countries, which has risen due to improved survey methodologies showing higher incomes.
- Despite higher incomes, the world is off track to meet the UN's goal of eradicating extreme poverty by 2030, with hundreds of millions still living in dire conditions.