Extreme poverty across the Asia-Pacific region has fallen dramatically over the past two decades, according to the OECD, with the share of people living on less than PPP 2.15 a day dropping from more than 21% in 2000 to about 2.6% in 2022 on average across the region.
Key takeaways
- Extreme poverty in the Asia-Pacific dropped from over 21% in 2000 to about 2.6% in 2022.
- India and Timor-Leste still had the highest extreme poverty rates, with more than 10% of people living below PPP 2.15 a day.
- Income inequality declined over the past decade but remained slightly above the OECD average in 2021.
The report says much of that decline was driven by major gains in China, Indonesia, Kyrgyzstan, and Tajikistan, where poverty rates fell by 30 percentage points or more. Still, the OECD said extreme poverty remains highest in India and Timor-Leste, where more than 10% of the population continues to live below the PPP 2.15-a-day threshold.
Among low- and middle-income economies, poverty levels were lowest in Bhutan, China, the Maldives, Malaysia, Mongolia, Thailand, and Tonga, where less than 0.5% of the population was living in extreme poverty.
Growth has reduced poverty, but inequality remains a challenge
The OECD said poverty generally declined faster in countries that posted stronger real GDP growth, with China recording the fastest pace of both economic growth and poverty reduction between 2000 and 2022. However, the report noted that in Armenia, Bangladesh, Georgia, India, and Lao PDR, poverty did not fall as much as expected relative to economic growth.
Income inequality in the Asia-Pacific region remained slightly higher than the OECD average in 2021, even though it has eased over the past decade.
The regional Gini coefficient declined from 0.35 in 2010 to 0.33 in 2021, compared with an OECD average of 0.32 in 2021.
Malaysia and the Philippines recorded the widest income gaps, with Gini coefficients above 0.40, while Tonga and Armenia posted the lowest levels at 0.28. Over the past 10 years, inequality declined in countries including China, Fiji, Georgia, and the Maldives, but increased in Lao PDR, Sri Lanka, and Tajikistan.
The findings point to significant social progress across the region, but also suggest that economic growth alone has not delivered equal gains everywhere, leaving persistent disparities in both poverty reduction and income distribution.
