The number of Brazilians living below the poverty line has dropped to its lowest point in over a decade, according to official data released Wednesday by the Brazilian Institute of Geography and Statistics (IBGE).

In 2023, 8.7 million people escaped poverty, reducing the proportion of the population under the poverty line—set at $6.85 per person per day by the World Bank—from 31.6% in 2022 to 27.4% last year.

The decline marks a significant milestone for Latin America's largest country, where 59 million people now live below the poverty threshold, down from 67.7 million in 2022.

Extreme poverty, defined as living on less than $2.15 per day, also saw a decline, dropping from 12.6 million people in 2022 to 9.5 million in 2023—4.4% of the population, the lowest level since records began in 2012.

Lula's Mission

Brazilian President Luiz Inacio Lula da Silva, who took office in January 2023, praised the progress on social media, stating, "Creating a middle-class society, where everyone lives with more dignity, that is what brings me joy. That's why we were elected, and what we are working toward."

Fighting poverty has been a cornerstone of Lula's presidency, driven by policies like the Bolsa Familia welfare program, which was reinstated shortly after his inauguration.

IBGE researcher Leonardo Athias attributed the reduction in poverty to a dynamic labor market and expanded welfare programs.

However, the financial strain of social spending has raised questions about the government's ability to balance its budget. Last week, Lula's administration announced spending cuts to address fiscal challenges.

Global Campaign

Lula, who himself rose from poverty, is extending his anti-poverty campaign globally. At a G20 summit in Rio de Janeiro in November, he launched the Global Alliance Against Hunger and Poverty, an initiative aimed at rallying international efforts to combat inequality.

Read more: Lula criticizes neoliberalism, urges action ahead of G20 summit

Despite the achievements, challenges remain. A quarter of Brazil's 212 million people still live below the poverty line, highlighting the need for continued economic growth and sustainable policy measures to maintain progress.