Uzbekistan updates poverty threshold

By Muzaffar Ismailov in Tashkent July 18, 2023

Uzbekistan's statistical agency has updated the country's poverty line definition based on minimum consumer expenditure, Daryo.uz has reported.

The poverty threshold has been determined at UZS 568,000 ($48.90) per person per month, up 14% from UZS 498,000 ($42.80).

The minimum consumer spending outlay was last updated on January 9, 2022, but since then headline inflation has exceeded 16.1%, with food inflation reaching 20.3%.

A survey of 10,600 households in 2021 identified the lowest expenditure group, which covered 30% of households. Based on the survey data, the minimum daily consumption of food and non-food goods and services was priced at UZS 498,000 ($42.80) per person per month.

Minimum consumer spending takes into account a person's daily needs for food and non-food products, as well as services. The methodology used involves determining basic expenses necessary to calculate a person's daily budget.

An Uzbekistan update published by the IFRC last week stated: "Based to the official national definition of poverty, the poverty rate has fallen from almost 28% in 2000 to 11% in 2019 and most of the poverty affects rural areas.

"In 2020, official statistics estimated unemployment at 10.5% of the active labour force, while another 34% of the working-age population were inactive (that is, not working or looking for a job). High unemployment and low wages are the cause of labour migration, mostly to Russia. Remittances from labour migrants, on which the country is also dependent, have been affected by COVID-19 and the Russia-Ukraine conflict."

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