Brazil Income Inequality Worsens as Top 1% Earns 31.5 Times Poorer Half
Brazil · Economy
Key Facts
- —Richest 1% ratio 31.5 times the poorest 50% income in 2025, up from 30.2 in 2024
- —Poverty rate 24.7% of population in 2025, down from 25.4% in 2024
- —People in poverty 52.4 million in 2025, down from 53.8 million in 2024
- —Top 10% to bottom 40% ratio 13.8 in 2025, up from 13.2 in 2024
- —Center-West ratio 13.0 in 2025, up from 11.7 in 2024
- —South lowest ratio 10.0 in 2025
- —Report basis 2026 Relatório do Observatório Brasileiro das Desigualdades, using IBGE/PNAD Contínua data
Poverty fell slightly in 2025, but the richest 1% expanded their income lead, a new report shows.
Brazil income inequality worsened in 2025, with the richest 1% earning 31.5 times as much as the poorest half. According to a new report.
The 2026 Relatório do Observatório Brasileiro das Desigualdades, based on IBGE/PNAD Contínua data. Was released Wednesday by the Pacto Nacional pelo Combate às Desigualdades.
income inequality: Report Details
The report, produced by Dieese and launched on 12 Aug. 2026, uses 2025 data from the national continuous household survey.
It shows the average income of the richest 1% was 31.5 times that of the poorest 50%. Up from 30.2 times in 2024.
The ratio between the top 10% and bottom 40% also rose, from 13.2 to 13.8. Regional differences persist, with the Center-West seeing the ratio climb from 11.7 to 13.0, while the South remained the lowest at 10.0.
The report’s authors note that this concentration of income at the very top is a structural feature of the Brazilian economy. Driven by high returns on capital and concentrated wealth.
They emphasize that the growth in the top 1%’s share occurred even as the labor market showed signs of recovery. Dieese, the Departamento Intersindical de Estatística e Estudos Socioeconômicos, is a well-known research body linked to Brazilian trade unions.
Its participation lends the report a degree of methodological rigor and social accountability.
Poverty Declines
Despite increased concentration, the share of people with household per-capita income up to half the minimum wage fell to 24.7% in 2025. Down from 25.4% in 2024.
This corresponds to 52.4 million people, a decrease from 53.8 million the previous year. The decline indicates some progress in absolute terms, even as the income gap widens.
The report attributes the mixed results to ongoing structural factors. The poverty line used in the report is based on half the minimum wage, a common benchmark in Brazil for extreme poverty.
The report focuses on relative shares rather than converting to absolute income figures. The reduction in poverty may be linked to increases in social transfer programs.
Such as the Bolsa Família, which was expanded during the period. However, the report cautions that such gains are fragile and can be reversed.
Context and Interpretation
The IBGE data underlying the report is part of the PNAD Contínua, a continuous national household sample survey. The report is produced by the Pacto Nacional pelo Combate às Desigualdades, a coalition of civil society groups.
Analysts note that income concentration can persist even when poverty falls, reflecting unequal growth. The report’s authors highlight the need for policies targeting the wealthiest segments.
Economists point out that the income gap between the top 1% and the bottom 50% is a persistent feature of many economies. But Brazil’s level is exceptionally high.
Brazil ranks among the most unequal countries in the world. The report’s focus on the top 1% is significant because that group’s income growth often comes from capital gains.
Which are taxed at lower rates than labor income. This has led to calls for progressive taxation on wealth and dividends.
Historical Comparison
The 2025 ratio of 31.5 is higher than the 2024 figure of 30.2, indicating a reversal of a previous trend. In earlier years, some improvements in inequality were recorded, but recent data show a worsening.
The Center-West’s jump from 11.7 to 13.0 is notably sharp, suggesting regional economic dynamics. The South’s stable 10.0 ratio remains the lowest among all regions.
Income inequality in Brazil has been on a long-term decline since the early 2000s. But the pace has slowed and even reversed in some periods.
The latest PNAD data suggest that the reversal is gaining momentum. The report also highlights that the North and Northeast regions, historically poorer.
Have seen less improvement in inequality, with ratios above the national average. This regional disparity underscores the need for targeted policies.
Reaction and Significance
The report’s release has sparked discussions among economists and policymakers. Some experts argue that Brazil income inequality remains a persistent challenge despite poverty reduction.
The data comes ahead of the 2026 elections, where economic policy is a key issue. The report is expected to inform debates on taxation and social spending.
Political leaders from various parties have commented on the findings. With some using them to argue for tax reform that increases taxes on the rich.
Others caution against overly aggressive measures that could harm investment. Civil society groups have organized events to publicize the report, calling for a national dialogue on inequality.
They plan to present the data to the presidential candidates ahead of the elections.
Methodological Notes
The figures are based on 2025 annual data from PNAD Contínua, providing a comprehensive view of income distribution. The report does not specify exact income amounts or US$ equivalents, as the focus is on ratios.
No official IBGE press release was cited directly, but the report is a secondary analysis of IBGE microdata. The Pacto Nacional pelo Combate às Desigualdades has released a full report with detailed tables.
The PNAD Contínua is one of the most complete sources of income data in Brazil. It includes information on all sources of income, including labor, capital, and transfers, making it suitable for inequality analysis.
The report acknowledges limitations, such as the potential underreporting of high incomes, which is common in household surveys. The authors used calibration techniques from national accounts, but actual inequality might be even higher.
Frequently Asked Questions
What does ‘PNAD Contínua’ stand for?
PNAD Contínua is the Brazilian government’s continuous national household sample survey, conducted by IBGE. It collects data on income, employment, and social indicators throughout the year.
Who publishes the Relatório do Observatório Brasileiro das Desigualdades?
The report is produced by the Pacto Nacional pelo Combate às Desigualdades, a coalition including Dieese. It uses IBGE data to analyze income inequality in Brazil.
What is the poverty threshold used in the report?
The poverty measure is the share of people with household per-capita income up to half the minimum wage. In 2025, this was 24.7% of the population, or 52.4 million people.
How does Brazil’s income inequality compare regionally?
The Center-West has the highest inequality ratio between top 10% and bottom 40%. At 13.0, while the South has the lowest at 10.0.
Sources: Poder360, O Globo, IBGE
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