2024 Poverty Rate Analysis Released… Severe Urban-Rural Disparity

Paraguay - It has been revealed that 1 in 5 Paraguayans are living in poverty to the extent that maintaining basic livelihoods is difficult.

According to a recent analysis by Mentu Consulting of Paraguay's National Institute of Statistics (INE)'s 2024 poverty rate and income distribution indicators, approximately 20% of the total population are living with income below the minimum cost of living, which is 897,168 Guaraníes in urban areas and 654,657 Guaraníes in rural areas.

In particular, the poverty rate in rural areas was 25.9%, which is 9.3%p higher than the 16.6% in urban areas, indicating a severe poverty gap between regions. The proportion of the population living in extreme poverty was also nearly twice as high in rural areas (7.9%) compared to the national average (4.1%). This suggests that rural residents have fewer opportunities.

Mentu Consulting analyzed that the school meals provided as part of the government's 'Zero Hunger' program had some impact on reducing the poverty rate. Assuming the value of one meal is 10,000 Guaraníes, it resulted in a monthly income increase effect of 220,000 Guaraníes per child, contributing to those in extreme poverty exceeding the minimum food purchase cost. However, the consulting firm emphasized that these poverty reduction effects must be based on sustainable policies.

According to INE's announcement, out of Paraguay's total population of 5,918,769 in 2024, the per capita income of approximately 1,189,045 people did not reach the minimum cost of living.

Meanwhile, the government announced that the poverty rate decreased by 2.2%p between 2023 and 2024, recording the lowest level since 1997/98. However, it should be considered that this survey result includes the entire year of 2023, thus reflecting the influence of the former President Mario Abdo Benítez's term.

In conclusion, Paraguay's poverty problem remains severe, with rural areas facing particular difficulties. It is pointed out that it is urgent to establish long-term and sustainable poverty eradication policies rather than temporary support measures.