- Changes in purchasing power parities
In the new 2016 round, the poverty measures for all countries are based on consumption PPPs from the 2011 round of data collection by the International Comparison Program;
see ICP (International Comparison Program) (database), World Bank, Washington, DC, http://siteresources.worldbank.org/ICPEXT/Resources/ICP_2011.html. The PPP exchange rates include
benchmark countries where actual price surveys were conducted, as well as regression-based PPP estimates where such surveys were not conducted. Details on the regression model for
the PPP estimation can be found in World Bank (2015).
- Changes in the countries
in the previous 2015 round, still used 2005 PPPs instead of 2011 PPPs include the following:
- the 2005 PPPs of Bangladesh, Cabo Verde, Cambodia, and Lao PDR are replaced in this round by 2011 PPPs;
- for countries in the International Comparison Program region of West Asia, 2011 regression-based consumption PPPs are used in this round.
- Changes in household survey data
More than 35 new household surveys have been added to the World Bank’s global database, and over 100 other surveys have been updated. About 1240 household surveys are used in this round.
- Changes in the CPI, population data, and national accounts data
The CPI data used for global poverty estimation among 116 countries are taken from the WDI database. See WDI
(World Development Indicators) (database), World Bank, Washington, DC, or the CPI data used in the PovcalNet.Slight different may exist for some countries
required PovcalNet to use their adjusted PCI measurements.
China and India use rural and urban CPIs (as provided by the national statistics offices). Monthly CPIs are used by 25 countries; most are in the Latin America and the
Caribbean region. Another seven countries—Bangladesh, Cambodia, Ghana, Iraq, Lao PDR, Malawi, and Tajikistan—use the implied, that is, the expected CPI. Population data
have been updated as part of the global poverty estimation exercise.
Most population data differ from the data of the previous year. Total population changes in 21 countries are significant, that is, they range between 0.5 million and 4.5 million.
National accounts data have also been updated: per capita GDP, private consumption, and expenditure data have all been updated.
- Middle East and North Africa Region
As part of this new round of global poverty measurement, a detailed reassessment of the 2011 PPPs has been conducted for Egypt, Iraq, Jordan, and the Republic of Yemen.
It found that the coverage and quality of the 2011 PPP price data for most of these countries were hindered by the exceptional period of instability they faced at the
time of the 2011 exercise of the International Comparison Program. Moreover, the poverty estimates resulting from using alternative regression-based PPPs still seem to
underestimate poverty severely in these economies, as well as in Lebanon and the Syrian Arab Republic (but not in West Bank and Gaza). In the Middle East and North Africa
region, the exclusion of Egypt, Iraq, Jordan, and the Republic of Yemen and the lack of recent data on Algeria and Syria imply that the remaining countries account for
only a third of the region’s population, below the 40 percent threshold of regional population coverage needed to report region representative estimates.
Adding to this low coverage is the fact that the failure to include data on Egypt, Iraq, and the Republic of Yemen and the lack of recent data on Syria, which are likely
to face increasing poverty rates due to instability and civil conflicts, will seriously underestimate regional poverty rates.
As a compromise between precision and coverage, the regional poverty totals and headcount ratios are not reported for the Middle East and North Africa, but an estimate of
the number of the poor is included in the global total (based on regression-based PPPs and 2011 PPPs, depending on the country).
China’s 2013 survey
A large part of the decline in poverty incidence in East Asia and Pacific in this new round based on 2013 data is attributable to China and Indonesia. The 2013 household
survey in China is the first integrated nationwide household survey in that country. This means that it is not comparable with the previous household surveys, in which
rural and urban areas were sampled separately. In addition, the most significant change in the 2013 national household survey relative to previous household surveys was
the inclusion of imputed rents into income and consumption aggregates for the first time.
In 2012–13, China’s poverty rate based on a US$1.90-a-day poverty line (in 2011 PPP) declined by about 4 percentage points, of which half, that is, about 2 percentage
points, can be traced to changes in the survey methodology. The actual poverty reduction not explained by these methodological changes was therefore 2 percentage points
in 2012–13 (table 2.1 in the main text and table 2B.1 above).
The World Bank’s poverty estimates on China are based on grouped distributions, which are often not as precise as direct estimates based on the full distribution of household
income and consumption aggregates.
In 2013, China’s poverty headcount ratio under the US$1.90-a-day poverty line was 2.2 percent using individual record data, as confirmed by the National Bureau of Statistics,
while it was 1.9 percent based on grouped data.
Definition of geographical regions and industrialized countries
In the past, PovcalNet used the World Bank’s income classification back to 1990 to track the Millennium Development Goals. Starting this round, a new regional geographical
classification is used. The income-country categories within the six geographical regions are (a) low- and middle-income countries and (b) countries eligible to receive
loans from the World Bank (such as Chile) and recently graduated countries (such as Estonia). See “World Bank Country and Lending Groups,” World Bank, Washington, DC,
https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups. See also PovcalNet (online analysis tool), World Bank, Washington, DC,
The rest of the high-income economies are listed within the category of industrialized economies, including the following: Andorra; Antigua and Barbuda; Aruba; Australia;
Austria; The Bahamas; Bahrain; Barbados; Belgium; Bermuda; British Virgin Islands; Brunei Darussalam; Canada; Cayman Islands; Channel Islands; Curacao; Cyprus; Denmark;
Finland; France; French Guiana; French Polynesia; Germany; Gibraltar; Greece; Greenland; Guadeloupe; Guam; Iceland; Ireland; Isle of Man; Israel; Italy; Japan; Korea; Kuwait;
Liechtenstein; Luxembourg; Macao SAR, China; Malta; Monaco; Netherlands; New Caledonia; New Zealand; Norway; Oman; Portugal; Qatar; Saint-Martin; Saudi Arabia; Singapore;
Sint Maarten; Spain; St. Kitts and Nevis; Sweden; Switzerland; Taiwan, China; Turks and Caicos Islands; United Arab Emirates; United Kingdom; United States; and the U.S. Virgin Islands.
- Changes in user interface
A new analytical function is provided for users to analyze their own distribution. This replaces the legacy Povcal.exe provided in the earlier version. The data submitted to PovcalNet will not
be stored by PovcalNet site, nor will PovcalNet do any currency conversion in the calculation. User should use same currency unit in the poverty line as in the distribution data.
- This round of global poverty estimates from 1981 to 2012 are based on 2011 PPP. But the parallel site PovcalNetPPP2005 using PPP 2005 is still there. User can switch between two sites. However, the underlying data used by the 2005 PPP site are not updated yet.
- The global poverty line is changed from $1.25/day in 2005PPP to $1.90/day in 2011PPP.
- Massive update on the distributional files. A total of 1205 dataset are used in this round.
- CPI, population and National account numbers are all updated;
- 2005 PPP is still used following countries: Bangladesh, Cabo Verde, Cambodia, Lao and Jordan. For these countries, the poverty estimates based on $1.9/day poverty line in 2011 PPP are still based on $1.25/day line in 2005 PPP.
- Please note that China has new integrated (not rural and urban separated
anymore) household survey starting 2013. This new survey is not comparable with
previous rounds which are the ones the Bank uses now. Staff in the China NBS are
working on revising the time series and revised time series is going to be
published soon. The Bank will update China poverty numbers at PovcalNet when the
new/revised integrated surveys become available. For more detailed explanation, see FAQ#18
Country level poverty estimates based on 2011 PPPs for Iraq, Yemen, Egypt, Algeria, and Syria are not available in this round because of inexplicably large deviations between CPI and PPP inflations, outdated or major ongoing revisions to latest surveys, and ongoing conflicts.
Even though five countries (Algeria, Egypt, Iraq, Syria and Yemen)
in the Middle East and North Africa region are omitted from the database
of country-level poverty estimates, poverty estimates for these countries are
calculated for the purposes of global poverty estimation.
2014/12/05 - PovcalNet Widget goes for testing.
PovcalNet widget is a plugable element for doing poverty analysis in any web pages, it can be embedded into third party site and used by any user. The underline methodology
and data are the same as the full scale PovcalNet. Plus, PovcalNet widget is implemented in multiple languages. It can be configured with default country and default poverty line. Please see
for full technical detail.
- The entire set of household surveys for ECA region is updated by ECA data team, which include more than 246 surveys from almost all 29 countries; For detail of
those survey data please go to:
- The entire set of household surveys for LAC region is updated, which include more than 280 surveys from almost all 25 countries; For details, please visit SEDLAC
- Many new surveys have been added into PovcalNet from quite a few countries of East Asia, Sub-Saharan Africa and South Asia, spanning year 2010 to 2012/13;
- High income countries' surveys are included in this version. User can calculate the shared prosperity for those countries. However, the estimation of the global
poverty headcount assumes that nobody lives below the $1.25 a day in high income countries. Due to negative income reported in the data, there are a number of people with
household incomes below $1.25 per person in rich countries (with big poverty gap and squared poverty gap indices), but estimated per capita consumption is above this threshold
for nearly everyone.
- The mean per capita income or consumption for bottom 10%,20%,..,90% of population are provided after the decile table.
- The household survey data for Brazil has been updated. The PNAD data used in PovcalNet for Brazil reflects changes in the weighting of the survey done by the
Brazilian statistical office (IBGE) in 2013 to the yearly PNAD survey from 2001 to 2012 ( nota_tecnica.pdf) . Additionally, the data reflects the use of the Domicilio as the
household unit for Brazil, per agreement with the Brazilian authorities.
- The new algorithm is applied to calculate the income or consumption decile. This computation change avoids the problem associated with income concentration.
- The computational problem in estimating Watts index has been fixed this round;