Indicator 1.10 Poverty headcount ratio at $8.30 a day (2021 PPP) (% of population) - proxy indicator

Poverty headcount ratio at $8.30 a day is the percentage of the population living on less than $8.30 a day at 2021 international prices.

The World Bank defines a higher poverty line of $8.30, in addition to the international poverty line of $3.00, to account for higher living standards in a changing world (these values adjust for purchasing power differences across countries). The value of $8.30 is the typical poverty line of upper-middle-income countries, which is the estimated minimum amount of money people in upper-middle-income countries need to cover their daily basic needs, including food, clothing, shelter, health care, education, and so on.

The welfare of people living in different countries can be measured on a common scale by adjusting for differences in the purchasing power of currencies. As differences in the cost of living across the world evolve, the international poverty line has to be periodically updated using new PPP price data to reflect these changes. The last change was in September 2022, when we adopted $3.00 as the international poverty line using the 2021 PPP. Poverty measures based on international poverty lines attempt to hold the real value of the poverty line constant across countries, as is done when making comparisons over time. The $4.20 poverty line is derived from typical national poverty lines in countries classified as Lower Middle Income. The $8.30 poverty line is derived from typical national poverty lines in countries classified as Upper Middle Income.

Reduce the number of people at risk of poverty or social exclusion by 15 million by 2030 compared with 2019 (policy reference: European Pillar of Social Rights Action Plan)