Indicator 1.20 Poverty gap at USD 8.30 a day (2021 PPP) (%) - proxy indicator

This proxy indicator measures the poverty gap against the international poverty line of USD 8.30 per day, expressed in 2021 purchasing power parity (PPP). The poverty gap represents the average shortfall in income or consumption relative to this threshold, with a shortfall of zero assigned to people whose income or consumption is above the threshold. It is expressed as a percentage of the poverty line and reflects the depth of poverty, rather than only the share of the population living below the threshold.

The data source is the World Bank’s World Development Indicators database, specifically the Poverty and Inequality Platform (PIP). The international poverty line of USD 8.30 per day in 2021 PPP is intended to measure poverty in upper-middle-income countries. The poverty gap is calculated as the average shortfall in income or consumption relative to this threshold across the entire population, including people who are not poor, for whom the shortfall is set to zero. This indicator is used as a proxy for Bosnia and Herzegovina because the relevant data from the European Union Statistics on Income and Living Conditions (EU-SILC) are not available in the Eurostat database for the original EU SDG indicator. According to the available World Bank data, values are available for selected years between 2001 and 2021: 4.7% in 2001, 2.2% in 2004, 4.3% in 2007 and 2011, 4.9% in 2015, and 2.7% in 2021. Due to the irregular time series and the proxy nature of the indicator, these data are not used to generate an automatic progress assessment against the original EU SDG indicator.

The data refer to the population of Bosnia and Herzegovina and measure the depth of monetary poverty against the World Bank’s international poverty line. They can be used for international comparisons with countries assessed using the same threshold, subject to the methodological limitations of the estimates. The indicator is not directly comparable with measures based on different definitions of poverty, including EU indicators based on the EU-SILC methodology. The international poverty line of USD 8.30 per day is not the national poverty line of Bosnia and Herzegovina.

his proxy indicator provides additional information on the depth of monetary poverty in Bosnia and Herzegovina. Between 2015 and 2021, its value decreased from 4.9% to 2.7%, a reduction of 2.2 percentage points. This decrease describes the change in the poverty gap measured against the World Bank’s international poverty line, but does not in itself constitute an assessment of progress against the original EU SDG indicator. No specific quantitative national target for 2030 has been confirmed for this proxy indicator.