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Published on Friday, November 22, 2024 | Updated on Wednesday, December 4, 2024

LATAM | Poverty Outlook

Summary

Poverty in LATAM represents a complex and diverse challenge. On average, monetary poverty affects 37% of the population in Argentina, Colombia, Mexico, and Peru. A Multidimensional Poverty Index constructed for these countries identifies key deprivations linked to health coverage, economic dependency, and education.

Key points

  • Key points:
  • The latest official data available places Mexico with the highest monetary poverty rate at 44% (2022), followed by Argentina at 42% (2023Q2), Colombia at 33% (2023), and Peru at 29% (2023).
  • For the countries in the study, monetary poverty is more prevalent in rural areas, among the population aged 0 to 14, individuals with low educational attainment, non-wage earners, and those employed in the informal sector.
  • A Multidimensional Poverty Index (MPI) is proposed using a uniform methodology, with consistent indicators and variables across the analyzed countries. The findings indicate that Mexico has the highest Multidimensional Poverty Index, followed by Peru, Colombia, and Argentina.
  • Health coverage, high economic dependency within households, and educational lags are the variables that contribute the most to the constructed MPI.
  • The intersection of monetary and multidimensional poverty indicators enables the identification of the vulnerable population—households not currently classified as monetarily poor but experiencing multidimensional poverty.

Documents and files

Report (PDF)

Latam-_-Pobreza-LatAm_-situacion-actual_.pdf

Spanish - November 22, 2024

Authors

VB
Vanessa Belapatiño BBVA Research - Senior Economist
DC
David Cervantes Arenillas BBVA Research - Senior Economist
MI
Mario Iparraguirre BBVA Research - Senior Economist
JL
Juan José Li Ng BBVA Research - Senior Economist
ML
María Claudia Llanes BBVA Research - Senior Economist
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