The problem of inequality in Brazil has deep historical and regional roots. The richest 20 percent earn 33 times the poorest 20 percent, which makes Brazil’s the 12th most unequal country in the world. That means that despite Brazil being a somewhat advanced economy, some of its citizens are poorest than those in the impoverished countries of the world.
High equality rate remains a persistent representative of Brazil despite some new findings:
- New analysis suggests that income inequality in Brazil is overestimated due to the limitations in the household survey data. The same analysis suggests that the cost-of-living differences are not fully reflected. However, the income equality is still high despite introducing better data.
- Although high-level income inequality data do no prove change over time, Brazil saw a significant income improvement in the last few years.
- In other social indicators, Brazil accomplished significant improvements, especially in health and education. Although these didn’t improve income inequality directly, they enhance quality of life of the poor and provide and build a foundation for improving income inequality in the future.