Poverty rates refer to the percentage of a population that lives below a defined income threshold, often known as the poverty line. This threshold varies by country and is typically determined based on the minimum level of income necessary to secure the basic necessities of life, such as food, shelter, and clothing.
Poverty rates are used as a key indicator in social and economic analysis. They help measure the extent of poverty within a population, inform government policy, guide resource allocation, and assess the effectiveness of anti-poverty programs. Higher poverty rates indicate a larger proportion of individuals or families struggling economically, while lower rates suggest a healthier economy and better living standards.
Poverty can be measured in various ways, including absolute poverty, which refers to the lack of essential resources, and relative poverty, which considers economic status in relation to the wider community. Poverty rates may differ across demographic groups, regions, and over time, providing insights into economic disparities and social challenges within a society.
Portugal's absolute poverty rate saw a dramatic decline in 2022, signaling a hopeful change for families. This decrease in poverty reflects both economic growth and effective social support programs. The…