Okuzeka
Economics vocabulary · Development and Inequality

Extreme poverty

Meaning in economics, with examples

nounCommon term

In economics, extreme poverty means: The most severe form of poverty, when people do not have enough income to meet even basic needs such as food, clean water and shelter.

In Turkish: aşırı yoksulluk, mutlak yoksulluk

How it is used

Measured by the World Bank with an international poverty line in dollars per person per day, adjusted for purchasing power and updated from time to time. Ending extreme poverty is the first target of the UN Sustainable Development Goals. People live in, or are lifted out of, extreme poverty.

Example sentences

  1. The share of the world's population living in extreme poverty has fallen sharply since 1990.

  2. Cash transfers have helped lift millions of families out of extreme poverty.

Common collocations

  • live in extreme poverty
  • end extreme poverty
  • lift people out of extreme poverty
  • absolute poverty
  • poverty lineThe minimum level of income considered necessary to meet basic needs in a country; people living below it are counted as poor.
  • inequalityThe unequal distribution of income, wealth or opportunities between people or groups in a society, or between countries.
  • developing countryA country with a lower average income, less industrial output and weaker infrastructure than the rich industrialised countries.
  • sustainable developmentEconomic and social progress that improves living standards today while protecting the environment and natural resources, so that future generations can also meet their needs.
  • purchasing powerThe amount of goods and services that a sum of money or an income can buy; it falls when prices rise faster than incomes.

More terms: Development and Inequality

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This page explains English vocabulary for learners. It is not financial advice.