Poverty, Informality and Vulnerabilities in Latin America

New reports show a slight improvement in poverty rates. By Prof. Nicolas Forsans

Latin America has long grappled with persistent poverty, inequality, and economic vulnerability. In recent years, however, the region has seen modest gains in poverty reduction, as highlighted in two recent reports by the World Bank and the OECD. While poverty rates have fallen to their lowest levels in decades—down to one in four people living below the poverty line—stagnating economic growth and high rates of informal employment continue to challenge sustainable progress. These reports underscore the complexity of the region’s socio-economic landscape: a slow economic recovery threatens gains, while informal work leaves millions without stable incomes or access to social protection. This article explores the latest data on poverty, informality, and inequality, examining the role of labour markets, government support, and the steps needed to achieve lasting change