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$3 a day: A new poverty line has shifted the World Bank’s data on extreme poverty. What changed, and why?

In June 2025, the World Bank increased its extreme poverty estimates by 125 million people. This doesn’t mean the world has gotten poorer: it reflects a new, higher International Poverty Line of $3 a day, up from $2.15.<br><br><a href="https://ourworldindata.org/new-international-poverty-line-3-dollars-per-day" target="_blank"><img src="https://ourworldindata.org/cdn-cgi/imagedelivery/qLq-8BTgXU8yG0N6HnOy8g/43f2893b-21b1-42de-1908-2293e2516400/w=1350"/></a>

How does the World Bank classify countries by income?

The World Bank classifies countries into four income groups based on average income per person. This article explains how these groups are defined.<br><br><a href="https://ourworldindata.org/world-bank-income-groups-explained" target="_blank"><img src="https://ourworldindata.org/cdn-cgi/imagedelivery/qLq-8BTgXU8yG0N6HnOy8g/d4cdc240-17cd-4e8c-31e3-d1d197547600/w=1350"/></a>

What are international dollars?

International dollars are used to compare incomes and purchasing power across countries and over time. Here, we explain how they’re calculated and why they’re used.<br><br><a href="https://ourworldindata.org/international-dollars" target="_blank"><img src="https://ourworldindata.org/cdn-cgi/imagedelivery/qLq-8BTgXU8yG0N6HnOy8g/95f674ac-5e7c-4474-6493-9a5578eb2a00/w=1350"/></a>
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