Panama: Poverty gap at $4.20 a day (2021 PPP) (%)

Key figures

What the numbers say

In 2024, Panama's poverty gap at $4.20 a day (2021 PPP) (%) fell 0.3 percentage points on 2023 (from 2.3% to 2%).

Across the 22 yearly changes before that (1998 to 2023), the average change was −0.58 percentage points and a typical year strayed about 1.35 percentage points from that (the standard deviation). This year's change was 0.2 standard deviations above that average, so it was an ordinary year: it sits within the range of normal year-to-year movement.

On record, the biggest yearly rise was 2.8 percentage points in 2001 and the biggest yearly fall was 3.4 percentage points in 2002. The numbers show how large and when, not why; for the cause, look at what happened in that country in those years.

From 2015 to 2024 the straight-line trend is downward, about 0.09 percentage points a year. A straight line explains 55% of the movement over 8 observed years.

Worked out from the yearly values above. How the checks work: standard deviation, z-scores and straight-line trends.

How it compares

In 2024, Panama had the 8th highest value of the 20 economies reporting that year. Higher is not always better: for some indicators the lowest value is the one to aim for. See the full ranking.

Closest to Panama in the 2024 ranking

• Georgia — 6th of 20: 2.7%
• Kyrgyz Republic — 7th of 20: 2.1%
• Brazil — 8th of 20: 2%
• Bolivia — 10th of 20: 1.4%
• Paraguay — 11th of 20: 1.3%
• Mexico — 12th of 20: 1.1%

What this measures

Poverty gap at $4.20 a day (2021 PPP) is the mean shortfall in income or consumption from the poverty line $4.20 a day (counting the nonpoor as having zero shortfall), expressed as a percentage of the poverty line. This measure reflects the depth of poverty as well as its incidence.

Limitations: Despite progress in the last decade, the challenges of measuring poverty remain. The timeliness, frequency, quality, and comparability of household surveys need to increase substantially, particularly in the poorest countries. The availability and quality of poverty monitoring data remains low in small states, countries with fragile situations, and low-income countries and even some middle-income countries. The low frequency and lack of comparability of the data available in some countries create uncertainty over the magnitude of poverty reduction. Besides the frequency and timeliness of survey data, other data quality issues arise in measuring household living standards.

Regional and income-group figures are computed by the World Bank as a population-weighted average.

All 30 values

Poverty gap at $4.20 a day (2021 PPP) (%) in nearby economies

• Argentina — 0.7% (2024)
• Bolivia — 1.4% (2024)
• Brazil — 2% (2024)
• Chile — 0.3% (2024)
• Colombia — 5.7% (2024)
• Costa Rica — 0.5% (2025)
• Dominican Republic — 0.6% (2024)
• Ecuador — 2.5% (2025)
• El Salvador — 3.1% (2023)
• Honduras — 10.1% (2024)

More poverty data for Panama

• Income share held by second 20% — 8% (2024)
• Income share held by third 20% — 13% (2024)
• Income share held by fourth 20% — 21.1% (2024)
• Income share held by highest 20% — 54.3% (2024)
• Income share held by highest 10% — 37.6% (2024)
• Proportion of people living below 50 percent of median income (%) — 23.2% (2024)
• Income share held by lowest 10% — 1.2% (2024)
• Income share held by lowest 20% — 3.6% (2024)
• Poverty headcount ratio at $3.00 a day (2021 PPP) (% of population) — 3.1% (2024)
• Poverty gap at $3.00 a day (2021 PPP) (%)

Reading data like this

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Questions people ask

What is Panama's poverty gap at $4.20 a day (2021 PPP) (%)?

2% in 2024, according to the World Bank (World Development Indicators).

How has it changed since 1979?

It is down 7.2 percentage points from 9.2% in 1979. The highest value was 22.8% in 1989 and the lowest 1.9% in 2019.

How does Panama rank?

8th highest of 20 economies with data for 2024.

Is the latest change in poverty gap at $4.20 a day (2021 PPP) (%) unusual for Panama?

In 2024, Panama's poverty gap at $4.20 a day (2021 PPP) (%) fell 0.3 percentage points on 2023 (from 2.3% to 2%). Across the 22 yearly changes before that (1998 to 2023), the average change was −0.58 percentage points and a typical year strayed about 1.35 percentage points from that (the standard deviation). This year's change was 0.2 standard deviations above that average, so it was an ordinary year: it sits within the range of normal year-to-year movement.

Source

World Bank, World Development Indicators, indicator SI.POV.LMIC.GP, licensed CC BY 4.0. Original source: World Bank, Poverty and Inequality Platform. Data are based on primary household survey data obtained from government statistical agencies and World Bank country departments. Data for high-income economies are mostly from the Luxembourg Income Study database. Figures are fetched from the World Bank API and refreshed monthly; see the series on data.worldbank.org. The full definition and method are in the World Bank's metadata glossary. Comparisons use the same World Bank release.

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