World Bank Says Poverty Reduction Is Slowing as Millions Remain Vulnerable Worldwide

The fight against global poverty is entering a more difficult phase, according to recent World Bank assessments, which indicate that progress in reducing extreme poverty has slowed significantly in many parts of the world. While millions of people have escaped poverty over the past three decades, economic shocks, conflicts, climate-related disasters, and rising debt burdens are making further progress increasingly challenging.

The World Bank’s latest poverty updates project that global extreme poverty will continue to decline, but at a much slower pace than previously seen. Estimates suggest that the global extreme poverty rate could fall from 10.4 percent in 2024 to around 10.0 percent in 2026. However, experts warn that recent geopolitical and economic disruptions could affect these projections.

According to the institution, poverty reduction remains highly uneven across regions. Countries affected by conflict, political instability, and weak economic growth continue to face the greatest difficulties. Many low-income nations are also struggling with high debt repayments, leaving fewer resources available for healthcare, education, and social welfare programs.

The World Bank recently updated its international poverty benchmark, increasing the threshold from $2.15 per day to $3.00 per day based on updated purchasing power calculations. As a result, global poverty figures have been revised, providing a more realistic picture of the number of people still living in severe economic hardship.

Another growing concern highlighted by the World Bank is the widening gap between countries that can benefit from emerging technologies and those that cannot. Many developing economies lack the infrastructure, digital resources, and skilled workforce needed to take advantage of advances such as artificial intelligence. This could limit future income growth and make poverty reduction more difficult in the coming years.

The institution has also emphasized the importance of investing in human capital. Reports indicate that declining education quality, healthcare access, and workforce training in several low- and middle-income countries could reduce future earning potential for millions of young people. Strengthening these sectors is considered essential for achieving long-term poverty reduction.

Despite the challenges, the World Bank notes that substantial progress has been made since the 1990s, when a much larger share of the global population lived in extreme poverty. Continued investment in economic growth, education, healthcare, and social protection programs could help sustain that progress, even amid growing global uncertainties.

Economists believe that the coming decade will be critical. The success of poverty reduction efforts will depend on whether countries can create jobs, improve productivity, strengthen public services, and build resilience against economic and climate-related shocks. As global challenges evolve, the World Bank continues to call for coordinated international action to ensure that development gains are not reversed and that vulnerable populations are not left behind.