Jamaica’s poverty rate dipped to a historic 7.8 per cent in 2024, down from the previous record low of 8.2 per cent in the prior year.

At the same time, 2.7 per cent of the population are facing extreme poverty; notably the lowest level since 1989.

The information, collected by the Statistical Institute of Jamaica, is contained in the Jamaica Survey of Living Conditions (JSLC) and was revealed on Tuesday by Planning Institute of Jamaica (PIOJ) Director General Dr Wayne Henry during the institute’s quarterly media briefing.

“Given the margin of error, the 2024 rate is statistically similar to 8.2 per cent recorded in 2023,” Henry noted.

He explained that extreme poverty is also called food poverty and said the relatively low level recorded in consecutive years is significant as, “In a Jamaican context, food poverty refers to the inability of a household to afford the minimum daily caloric intake required for good health.”

Henry said there has been a gradual decline in the food poverty rate since 2013 when it was recorded at 10.3 per cent. He said factors influencing the low food poverty rate include the impact of targeted social protection expenditure and interventions that created a buffer at the household level and served to maintain consumption, given the heightened vulnerability of marginal households to economic contraction.

It was also aided by record low unemployment levels which, according to Henry, “supported higher consumption by vulnerable groups”.

Additionally, the PIOJ boss pointed to improved macro-economic stability, inclusive of moderate inflation rates.

“These developments contributed to the national and regional poverty estimates in 2024 showing no significant difference when compared with the estimates for 2023,” he stated.

Henry told the press briefing that in Jamaica consumption expenditure data, rather than income, is used to measure poverty. He said this was “due to the availability and relative accuracy of the data where the rates are first calculated from household data at the regional level, then aggregated nationally”.

He pointed out that the 2024 JSLC results indicate that poverty remains at levels similar to 2023, despite economic shocks brought on by weather-related events. The reduced agricultural output and accompanying reduction in rural earnings that followed resulted in a contraction of gross domestic product.

But Henry highlighted that, “The Government’s targeted relief interventions, a moderation of inflation and increased employment, helped to preserve household consumption.”

He emphasised that in 2012 poverty in Jamaica was 19.7 per cent, meaning that nearly one in every five Jamaicans was consuming below the poverty line. He noted that the rates have trended down since, but spiked to 16.7 per cent in 2021, “likely reflecting the fallout from the COVID-19 pandemic”.

The 2024 results show relative stability across all regions of the country. In the Greater Kingston Metropolitan Area (GKMA), poverty was recorded at 2.5 per cent compared to three per cent in 2023. Of note is that the rate in the GKMA was the lowest of any region, and is consistent with historical trends.

In other urban centres the poverty rate was 9.4 per cent in 2024, compared to nine per cent in 2023. Meanwhile, in 2024, rural areas, which Henry pointed out historically record the highest rates of poverty across the country, the rate was 11 per cent, compared to 11.5 per cent in 2023.

In the meantime, other trends show relative stability in mean per capita consumption across the country.

“Compared to 2023, nominal mean per capita consumption expenditure grew by 5.5 per cent in 2024. However, after adjusting for inflation, real mean per capita consumption rose by 1.1 per cent when compared to 2023,” said Henry.

He shared that consumption in quintiles one and two — the poorest 40 per cent of the population — rose by 2.8 per cent and 1.3 per cent, respectively. Henry also shared that the PIOJ has embarked on a national, multidimensional poverty index which will complement the traditional monetary measure by capturing other forms of deprivation. These include limited access to education and health care, inadequate housing, and unemployment.

Planning Institute of Jamaica Director General Dr Wayne Henry told the press briefing that in Jamaica, consumption expenditure data, rather than income, is used to measure poverty.