World

Extreme poverty: hard-won gains, new risks ahead

For decades, the world made remarkable progress in reducing extreme poverty. This transformation, driven in large part by economic growth, lifted more than a billion people out of poverty. But as the Atlas of Global Development 2026 shows, progress is slowing, and in some places, reversing.

A historic decline in extreme poverty

Over the past several decades, the world has achieved extraordinary progress in reducing extreme poverty. In 1950, the majority of people globally — around 60 percent — lived in extreme poverty, struggling to meet basic needs.

Since then, sustained economic growth, particularly in regions such as East and South Asia, has driven a steady decline, bringing the global extreme poverty rate down to roughly 10 percent today. This long-term trend reflects one of the most significant development achievements in history, with hundreds of millions of people lifted out of poverty and improvements seen across many regions.


Countries left behind

Extreme poverty is proving especially persistent in a group of 43 countries where progress has stalled or reversed. Many of these countries face overlapping challenges — such as conflict, weak institutions, and limited economic opportunities — that make sustained poverty reduction difficult. 

This pattern suggests that, while global poverty has declined over past decades, some countries appear caught in a cycle where progress is slow, fragile, and harder to sustain, making the goal of ending extreme poverty increasingly dependent on addressing these deep-rooted constraints.

Poverty could rise again

Looking ahead, there is a growing risk that global poverty could increase rather than continue its long-term decline. In many of the countries with the highest poverty levels, progress has stalled or reversed, and more than half of the world’s poor now live in places where poverty is not falling.  If these trends persist, the number of people living in extreme poverty could rise in the coming decades, with projections suggesting that 600 million more people could fall into extreme poverty by 2050 if they continue along their current pathway.  

This marks a significant departure from past decades. Tackling entrenched challenges including conflict and poor governance will be needed to prevent a future where poverty is on the rise.

Source : World Bank

GLOBAL BUSINESS AND FINANCE MAGAZINE

Recent Posts

Better work, not always better workers

Professional judgement comes from learning by doing, but AI has the potential to disrupt this…

7 hours ago

Geopolitical risk is reshaping global finance, one bank loan at a time

Geopolitical tensions are increasingly reshaping the flow of trade, investment and capital flows. This column…

8 hours ago

Lifting the curtain on the EU’s debt

The EU’s far-reaching response to a series of major shocks has turned it into a…

8 hours ago

The cost of not innovating: Frontier AI models, cyber defence, and EU strategic autonomy

The cyber threat landscape changed dramatically in April 2026 with the emergence of frontier AI…

8 hours ago

Capital inflows boost output, even after accounting for expectations

Emerging market economies that are expected to perform well may attract more foreign capital, making…

8 hours ago

The smokestack illusion: Who really pays for net zero

Reaching net-zero CO2 emissions by 2050, as prescribed by the Paris Agreement, is hard to…

9 hours ago