American Expatriate Costa Rica

Low inflation and subsidies took 10,000 households out of poverty last year

According to the National Institute of Statistics and Census (INEC), based on the National Household Survey (ENAHO) 2016, in the last year, about 10,400 households went out of poverty.

From this group, 9,708 households were in extreme poverty.

The decrease in the number of poor households nationwide is explained mainly by a relative increase in the income per person (3.6%) combined with a decrease in the value of the poverty lines because of a negative change on CPI between June 2015 and 2016 (-0.9%).

Annia Chaves, an official of INEC, said that there was a combination of the increase in income of the poorest households, where subsidies grow to a greater extent, as well as a reduction in the cost of the basic basket.

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Chaves highlights the decline by 2 percentage points in the percentage of poor households in rural areas, remaining at a level of 25.7%, while in urban areas is 16% of households.

A total of 307,270 households currently live in poverty, representing 20.5% of households in the country.

The average net income per household is 1,027,291 colones monthly, representing an increase in the nominal value of 2.4% compared to 2015.

On a per capita income is estimated at 369,518 colones per month, 3.6% higher than in the previous year.

With the method of Multidimensional Poverty Index, which covers gaps in education, housing, health, employment and social protection, it was estimated that poverty hits 20.5% of households, a reduction of 1.3 percentage points compared to 2015.

The housing indicator and Internet use had the biggest impact on poverty reduction this year. The greatest deprivations of households remain in access to health (uninsured) and education (low human capital development).

crhoy.com