Brazil shows poverty reduction despite rising inequality

The 2026 Report from the Brazilian Observatory of Inequalities indicates that Brazil has seen improvements in 71% of the 48 monitored indicators. Key areas of progress include poverty reduction, increased average income, labor market expansion, improved food security, and better access to basic services. Health indicators, such as reduced malnutrition among children and the elderly, and education metrics like lower illiteracy rates, also showed positive trends. Additionally, homicide rates among youth aged 15 to 29 have declined.

However, the report warns that structural inequalities remain deeply rooted. Eight indicators worsened, including increased income concentration and widening gender pay gaps, where women continue to earn significantly less than men. The study also highlights unfavorable conditions for the Black population and a concentration of poor social indicators in the North and Northeast regions. Notably, the average income of the wealthiest 1% is now 31.5 times higher than that of the poorest 50%, signaling that economic growth has not yet effectively addressed historical disparities in race, gender, and territory.