Multidimensional poverty in Paraguay fell in 2025: what it means and how many people it affects

Multidimensional poverty in Paraguay saw a notable decrease in 2025, with the National Statistics Institute (INE) reporting that 13.5% of the population experienced these deprivations. This figure represents a significant improvement from the 15.67% recorded in 2024, indicating that roughly 96,703 individuals have moved out of this state.

Unlike monetary poverty, which focuses on income levels, the Multidimensional Poverty Index (MPI) assesses qualitative deficiencies. It examines access to essential services such as health, education, housing, and other basic needs. The MPI is calculated across four key dimensions: access to work and social security; housing and services; health and environment; and education, each carrying a 25-point weight.

In 2025, the MPI covered 830,925 people. Of this group, 45.8% (380,194 individuals) were also classified as monetarily poor, meaning they face both low income and qualitative deprivations. Conversely, 54.2% (450,131 individuals) of the multidimensionally poor were not monetarily poor, highlighting that income alone does not determine well-being.

Each of the four dimensions is broken down into specific variables. For instance, the 'work' dimension considers unemployment and lack of pension contributions, while 'housing' looks at adequate building materials and overcrowding. The 'health' dimension assesses factors related to healthcare access and environmental conditions.