Paraguay - According to the report '2024 Monetary Poverty and Income Distribution Indicators' released by the National Institute of Statistics (INE) of Paraguay last Friday, the overall poverty rate in Paraguay in 2024 decreased by 2.2% compared to the previous year. However, the extreme poverty rate only slightly decreased by 0.5%, and notably, the number of people in extreme poverty actually increased in the capital city of Asunción and the Central region.
The report indicates that 6,452 more people fell into extreme poverty in the Central region and 690 more in Asunción in 2024 compared to 2023. This aligns with the fact that the total number of people in poverty increased by 6,452 in the Central region and 690 in Asunción during the same period. Poverty also increased in the Caaguazú and Itapúa regions.
On the other hand, the total number of people in poverty, including those in extreme poverty, decreased in the remaining regions: Concepción, San Pedro, Cordillera, Guairá, Caazapá, Misiones, Paraguarí, Alto Paraná, Ñeembucú, Amambay, Canindeyú, and Presidente Hayes. San Pedro experienced the largest decrease, with 11,750 people escaping poverty.
Significant Regional Disparities Amidst Overall Poverty Reduction Trend
Looking at the total number of people in poverty, 21,034 people in the Central region and 10,058 people in Asunción escaped poverty. Alto Paraná recorded the largest decrease with 29,586 people moving out of poverty.
However, the total number of people in poverty actually increased in Concepción (by 5,824), Itapúa (by 4,964), and Misiones (by 1,215), highlighting significant regional disparities.
20.1% of Paraguay's Total Population in Poverty in 2024
In 2024, approximately 1,189,045 people, representing 20.1% of Paraguay's total population of 5,918,769, were living in poverty. Among them, about 244,825 people were in extreme poverty with a monthly income below 391,894 guaraníes (extreme poverty line). The poverty line is determined based on the monthly cost of a basic food basket (extreme poverty line) and a basket of essential goods and services (poverty line) for an individual. As of 2024, the extreme poverty line in urban areas was 391,894 guaraníes, and the poverty line was 897,168 guaraníes. In rural areas, the extreme poverty line was 357,891 guaraníes, and the poverty line was 654,657 guaraníes.
According to the INE, the extreme poverty line in urban areas was about 9% higher than in rural areas, and the poverty line was about 27% higher.
Overall, the cost of the basic food basket (extreme poverty line) in 2024 increased by 9.0% compared to 2023, while the cost of the basket of essential goods and services (poverty line) increased by 5.1% in urban areas and 5.8% in rural areas.
This INE report suggests that while the overall poverty rate in Paraguay has decreased, a polarization phenomenon is occurring, with an increase in extreme poverty in some regions, particularly the metropolitan area.
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