Economic growth always reduces poverty.

Is it true that economic growth always reduces poverty?

Partly. Several country-level studies report that economic growth reduced poverty in specific cases (Indonesia, a South African province, Nigeria), while other sources note growth alleviated poverty in only 18 of 24 countries and that pro-poor growth occurred in just one sector in Iran. An IMF economist describes growth and poverty reduction as going 'largely' hand in hand, indicating the relationship is general rather than universal.

Verdict: CONTESTED PARTIAL · 4 sources for, 4 against · Last checked 17 Oct 2026

THE RELATIONSHIP BETWEEN ECONOMIC GROWTH AND POVERTY IN INDONESIA. (n.d.). jss.utm.md. https://jss.utm.md/wp-content/uploads/sites/21/2022/10/JSS-3-2022_10.52326-jss.utm_.2022.5-3.03.pdf

Economic growth. (n.d.). en.wikipedia.org. https://en.wikipedia.org/wiki/Economic_growth

McKay, A. & Thorbecke, E. (2015). Economic Growth and Poverty Reduction in Sub-Saharan Africa. play.google.com. https://play.google.com/store/books/details?id=MKTTCgAAQBAJ&source=gbs_api

Agricultural Productivity, Economic Growth and Poverty Reduction in Nigeria: A Trend Analysis Approach. (2025). doi.org. https://doi.org/10.47772/ijriss.2025.908000214

Analysis of the Impact of Economic Growth on Income Inequality and Poverty in South Africa: The Case of Mpumalanga Province. (2017). dergipark.org.tr. https://dergipark.org.tr/tr/pub/ijefi/issue/32006/353543

Wikipedia: Poverty-Growth-Inequality Triangle. (n.d.). en.wikipedia.org. https://en.wikipedia.org/wiki/Poverty-Growth-Inequality_Triangle

Pro-Poor Growth in Different Economic Sectors in Iran: A Zenga Index Approach. (2021). doi.org. https://doi.org/10.21203/rs.3.rs-150972/v1

Finance & Development, December 2000 - Growth Versus Poverty Reduction: A Hollow Debate. (n.d.). imf.org. https://www.imf.org/external/pubs/ft/fandd/2000/12/rodrik.htm