September 2024 Update to the Poverty and Inequality Platform (PIP)

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The September 2024 update to the Poverty and Inequality Platform (PIP) introduces new methodologies and indicators for measuring global poverty, including the Prosperity Gap and nowcast estimates up to 2024 [5][9] - The update confirms recent poverty trends, indicating that global extreme poverty has returned to pre-pandemic levels, although low- and lower-middle-income countries continue to face challenges [10][11] - The report highlights significant regional disparities, with South Asia showing the largest reduction in poverty, while the Middle East and North Africa have experienced the most significant regression [10][11] Summary by Sections 1. Introduction - The update revises poverty and inequality estimates up to 2022, with new nowcast estimates available for 2024 [9] 2. Nowcasting Poverty - Nowcasting estimates are provided using both global and country-specific models, allowing for real-time poverty assessments [19][20] 3. New Measures of Shared Prosperity - The Prosperity Gap is introduced as a new measure, indicating the average factor by which incomes need to be multiplied to reach a standard of $25 per person per day [23][24] - The report also includes the count of countries with a Gini index greater than 40, highlighting high-income inequality [26] 4. Bottom Coding of Welfare Distributions - Adjustments are made to account for measurement errors in consumption and income distributions, improving the accuracy of poverty indicators [27][28] 5. Synthetic Distributions from Grouped Data - The report details a new method for calculating poverty indicators from grouped data, enhancing consistency across the platform [30][31] 6. New Analytical Dashboards - Two new analytical tools, Growth Incidence Curves and Poverty Decompositions, are introduced to analyze economic growth distribution and changes in poverty rates [33][34] 7. Changes to Welfare Distributions - The report discusses spatial deflation adjustments in Indonesia, improving the accuracy of poverty estimates by accounting for regional cost of living differences [39][40]