This economic indicator quantifies the average deficit in income or consumption experienced by those living below the poverty threshold of $6.85 per day, based on purchasing power parity from 2017. By incorporating the expenditures of those not classified as poor into the calculation as having zero shortfall, it offers a nuanced perspective on poverty that goes beyond simple headcounts. This metric not only highlights the prevalence of poverty but also emphasizes its severity, revealing how far individuals or households are from achieving economic stability. Understanding the poverty gap is crucial for policymakers, as it aids in designing targeted interventions and measuring the effectiveness of poverty alleviation strategies over time.
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