Brazil’s Inequality Drop in 2024 Stands Out, But Still Trails Regional Peers

Brazil’s income inequality fell to its lowest point in history in 2024, according to the national statistics agency IBGE. The Gini index, a standard measure of income disparity, dropped to 0.506.

This figure reflects a clear improvement from previous years and signals that the poorest Brazilians saw faster income growth than the wealthiest. However, when compared to other large economies in Latin America and the Global South, Brazil’s inequality remains among the highest.

Recent data shows that Brazil’s Gini coefficient, even after its recent drop, still sits above 0.50. In contrast, Chile, Mexico, Argentina, and Peru all report lower Gini scores, ranging from 0.40 to 0.44.

For example, Chile and Mexico both posted Gini coefficients of 0.43 in 2022, while Argentina and Peru recorded 0.41. Only Colombia, with a Gini of 0.54, and Panama, with 0.49, show higher or similar levels of income disparity in the region.

Latin America as a whole continues to face high inequality, but Brazil’s figures remain at the upper end of the spectrum. According to the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), the region’s average Gini index has hovered around 0.46.

Brazil’s Progress on Inequality Continues

This has been the case in recent years. This means Brazil’s inequality, while falling, still exceeds the regional average. Globally, the story is similar. South Africa, Namibia, and several other countries in the Global South report higher Gini coefficients, often above 0.55.

Yet, many emerging economies in Asia and Africa, such as Vietnam (0.36), Indonesia (0.36), and Nigeria (0.35), show much lower inequality than Brazil.

Economic growth in Latin America slowed to an average of 1.8% in 2024, but Brazil’s 3.4% expansion outpaced most peers. This growth, combined with labor market recovery and targeted social policies, helped reduce poverty and inequality.

Still, 172 million people in Latin America lack enough income to meet basic needs, and Brazil alone accounts for a significant share of this group.

Brazil’s progress on inequality is real and measurable, but the country remains one of the most unequal in its region and the wider Global South. The gap between rich and poor, while narrowing, continues to shape Brazil’s market and society.