Statistically, poverty is determined by the GDP Per Capita of a country. The first step taken by the GDP Per Capital format is based on the country’s data of purchasing power parity, literacy rate and employment rate. Secondly, these parameters gathered are then used to calculate the level of poverty of a
country.
This global measurement format is used as a standard that allows economists to gauge the prosperity of nations on its economic growth, thereby, breaking down the country’s economic output to a per-person allocation, and dividing the GDP Per Capita by its population.
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