Poverty threshold

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The poverty threshold, poverty limit, poverty line, or breadline^[1] is the minimum level of income deemed adequate in a particular country.^[2] The poverty line is usually calculated by estimating the total cost of one year's worth of necessities for the average adult.^[3] The cost of housing, such as the rent for an apartment, usually makes up the largest proportion of this estimate, so economists track the real estate market and other housing cost indicators as a major influence on the poverty line.^[4] Individual factors are often used to account for various circumstances, such as whether one is a parent, elderly, a child, married, etc. The poverty threshold may be adjusted annually. In practice, like the definition of poverty, the official or common understanding of the poverty line is significantly higher in developed countries than in developing countries.^[5][6]

In September 2022, the World Bank updated the International Poverty Line (IPL), a global absolute minimum, to $2.15 per day^[7] (in PPP). In addition, as of 2022, $3.65 per day in PPP for lower-middle income countries, and $6.85 per day in PPP for upper-middle income countries.^[8][9] Per the $1.90/day standard, the percentage of the global population living in absolute poverty fell from over 80% in 1800 to 10% by 2015, according to United Nations estimates, which found roughly 734 million people remained in absolute poverty.^[10][11]