World Bank study shows that in 2011, for the first time ever, the number of middle-class people in the region outstripped the number of poor people.
São Paulo – The population of Latin America and the Caribbean is benefitting from economic growth, reduced unemployment rates and wage increases, and leaving poverty to join the middle class. According to a study released this Friday (14th) by the World Bank, in 2011, for the first time ever, there were more middle-class citizens than poor ones in Latin America. The bank rates as “middle class” those whose incomes range from US$ 10 to US$ 50 per day, and as “poor” those who make US$ 4 to US$ 10 daily.
The study warns, however, that social inequality reduction policies must be adopted or maintained in order to prevent people who have exited poverty to be drawn back into it.
According to the report Shifting Gears to Accelerate Shared Prosperity in Latin America and the Caribbean , the two main reasons that have led the population out of poverty were increased employment and income. Since the year 2000, according to the document, wages increased by an average of 25%. During the same period, the wages of the 40% poorest increased the most and fastest.