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Extreme Poverty

Living below $3.00 per day (2021 PPP): Definition, measurement methodology, and who the 839 million extreme poor are.

839M People in Extreme Poverty
$3.00 International Poverty Line
10.1% Share of World Population
Understanding Extreme Poverty

What Does
$3 a Day Mean?

The International Poverty Line

The $3.00/day threshold (2021 PPP) reflects the average national poverty lines of low-income countries. It was updated from $2.15 in June 2025 to better capture the reality of deprivation in the poorest countries.

Geographic Concentration

67% of the extreme poor live in Sub-Saharan Africa. Just 10 countries account for over 60% of global extreme poverty, with Nigeria, Democratic Republic of Congo, and India having the largest populations in extreme poverty.

Who Are the Extreme Poor?

The extreme poor are disproportionately rural (80%), young (half are children), and work in agriculture. They face multiple deprivations: hunger, lack of clean water, inadequate shelter, and no access to basic healthcare or education.

Purchasing Power Parity

The poverty line uses PPP to compare living standards across countries. $3/day in Uganda should buy the same basket of goods as $3/day in Bangladesh—accounting for local price differences, not exchange rates.

Measurement & Trends

How Extreme Poverty
Is Measured

Methodology

From $2.15 to $3.00: Why the Line Changed

Breakdown of the June 2025 poverty line update

Updated Feb 2026
Source: World Bank (June 2025 Update)

Key Insight: The increase from $2.15 to $3.00 has two components: (1) Updated 2021 PPP data accounts for $0.35 of the increase, (2) Revised national poverty lines from low-income countries (reflecting improved survey methodology) account for the remaining $0.50 increase. This means 125 million more people are now counted as living in extreme poverty compared to the old definition.

Geographic Distribution

Top 10 Countries by Extreme Poor

Millions of people (2024)

Feb 2026
Source: World Bank PIP (2025)
Global Comparison

Population Below Each Poverty Line

% of world population (2025)

Feb 2026
Source: World Bank (2025)
Demographics

Who Are the Extreme Poor?

Demographic characteristics of people living below $3/day

Updated Feb 2026
Source: World Bank Poverty and Inequality Platform

Key Insight: 80% of the extreme poor live in rural areas, 50% are children under 18, and 65% work in agriculture. This profile highlights that poverty eradication requires rural development, agricultural productivity improvements, and investments in children's education and health.

Technical Details

Measurement
Process

The World Bank measures extreme poverty using household surveys that capture consumption or income data. Here's how it works:

  • Step 1 - National Surveys: Countries conduct household surveys asking about consumption, income, and expenditures (food, housing, healthcare, etc.)
  • Step 2 - PPP Conversion: The international poverty line ($3.00 in 2021 PPP) is converted to local currency using Purchasing Power Parity rates
  • Step 3 - Price Adjustment: The local currency threshold is adjusted to the survey year's prices using the Consumer Price Index (CPI)
  • Step 4 - Poverty Count: Households with consumption/income below the threshold are counted as extreme poor
  • Step 5 - Aggregation: Country-level data is aggregated to produce regional and global poverty estimates

Data Limitations: Not all countries conduct surveys regularly. The most recent data for some countries may be several years old, requiring statistical projections.

World Bank PIP Poverty & Inequality Platform
ICP 2021 PPP data (2024 release)
Low-Income Countries National poverty line data
Household Surveys LSMS, DHS, and national surveys
Beyond the Line

Other Poverty
Thresholds

The World Bank uses multiple poverty lines to capture different levels of deprivation across country income groups.

Lower Middle-Income Line: $3.65/day

This threshold represents the median national poverty lines of lower middle-income countries. About 24% of the world lives below this line.

Upper Middle-Income Line: $6.85/day

Based on upper middle-income country standards. About 47% of the global population lives below this threshold, showing persistent moderate poverty.

Poverty Gap Index

Measures the intensity of poverty—how far below the poverty line people live on average. A higher gap means the poor are further from escaping poverty.

Societal Poverty Line: $30/day

A threshold reflecting minimum living standards in high-income countries. About 81% of the world lives below this level, highlighting global inequality.

Related Topics

Explore More

Global Poverty Overview

Return to the main poverty page for all statistics, charts, and regional breakdowns.

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Regional Trends

Compare extreme poverty rates across Sub-Saharan Africa, South Asia, and other regions.

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Multidimensional Poverty

Beyond income: explore deprivations in health, education, and living standards.

→