The National Statistics Office of Nepal has published the preliminary results from the Fourth Nepal Living Standards Survey (2022/23). Few highlights are below.
- The new poverty line has been defined at Rs. 72908. At this poverty line, the poverty headcount ratio is 20.27 percent, urban poverty at 18.34 percent and rural poverty at 24.66 percent. The low rate of reduction in absolute poverty is due to the earthquake in 2015 and the COVID crisis. However, if calculated at the 2010/11 poverty line adjusted for inflation, significant decline in poverty has been observed from 25.16 percent to 3.57 percent.
- The squared poverty gap, which measures the inequality among the poor, is 1.48 percent. Such deprivation for the poor individuals is more severe in rural areas (1.91 percent) than in urban areas (1.29 percent).
- Poverty gap index is 4.52 percent implying that a total of NRs. 94.71 billion is needed to bring the poor up to the minimum welfare threshold defined by the new poverty line in 2022-23 assuming perfect targeting and zero leakage. Such index is 5.64 percent in rural area and 4.03 percent in urban area.
- For the first time, poverty has been calculated at province level. The maximum poverty has been observed in Sudurpaschim Province and lowest in Gandaki Province.
- The Gini index, which measures the inequality in consumption expenditure has been estimated 0.30. Such index higher in urban area (0.303) compared to the urban area (0.287).
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For details, refer to the report.
