Cuts in the Bolsa Família Program and the Escalation of Extreme Poverty in Brazil

Between 2014 and 2018, the income of the poorest 5% in Brazil fell by 39%. Consequently, the number of people under the extreme poverty line increased by 71.8% in this period – adding 3.4 million people in this group. This rise in extreme poverty occurred due to a harsh economic recession and cuts in the Bolsa Família Program (BFP or Family Grant).

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2019 Social Assessment: Has Brazilian inequality peaked?

In the last year, inequality of labor earnings reached its highest level in the decade. Looking at the annual series, income inequality has been rising since 2015, and in 2019 its average growth was 0.17%, the lowest rate recorded in this period, thus suggesting a stability trend. The mean per capita income kept growing for the third year in a row, reaching a growth rate of 1.6% in 2019.

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