World Bank Raises Extreme Poverty Line to $3 a Day: A Deeper Dive into the Data
2025-08-14
The World Bank's increase of the international poverty line from $2.15 to $3 per day resulted in a 125 million person increase in extreme poverty estimates. This doesn't signify global impoverishment, but rather reflects a higher poverty standard. The adjustment accounts for inflation, but also incorporates changes in low-income countries' own poverty lines. While extreme poverty numbers rose, the data concurrently reveals higher-than-expected incomes among the world's poorest. The article details the definition of the international poverty line, the reasons behind the World Bank data changes, and their implications for understanding global poverty.