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In 2023, Estonia experienced a noteworthy decline in its overall poverty rate. About
20.2% of the population is now living at risk of poverty, which marks a reduction of
2.3 percentage points from the previous year. Additionally, the rate of individuals living in absolute poverty decreased to
2.7%, down by
0.8 percentage points. This translates to roughly 274,800 people at risk of poverty, or nearly 29,000 fewer than in
2022. However, a new challenge has surfaced: the perception of deprivation among the population increased by
1.5 percentage points, indicating that almost 104,700 people felt deprived of essential items in their lives.
Key Takeaways
- Estonia's overall poverty rate decreased in 2023, but deprivation concerns among the population rose.
- Elderly individuals living alone experienced the highest poverty rates, though they saw significant improvements this year.
- Regional disparities persist, with some areas reporting higher poverty rates despite the national decline.
Overview of Poverty Trends in Estonia
In 2023, Estonia reported a decrease in its poverty rates. The at-risk-of-poverty rate dropped to
20.2%, a reduction of
2.3 percentage points from
2022. Additionally, the absolute poverty rate fell to
2.7%, representing a decline of
0.8 percentage points. This change means around 274,800 people are at risk of poverty, a decrease of nearly 29,000 individuals from the previous year. However, in 2024, perceived deprivation increased by
1.5 percentage points, with nearly 104,700 people feeling deprived of basic necessities. Epp Remmelg from Statistics Estonia stated that the at-risk-of-poverty rate highlights income inequality. Elderly individuals living alone and single-parent households faced the highest poverty rates, although these groups showed significant improvement in
2023. Nonetheless, poverty rates for working-age households without children remained stable or saw slight increases. Regionally, counties like Ida-Viru and Lääne-Viru reported higher poverty rates compared to Harju and Rapla counties. Despite the overall decline, absolute poverty still affected nearly 36,400 individuals, marking an improvement from previous years but still raising concerns within the long-term context. It is important to note the distinction between absolute poverty, which refers to failing to meet basic needs, and deprivation, which involves the inability to afford common societal items.
Key Demographics and Regional Disparities
Estonia's economic progress faces challenges despite the decline in poverty rates. The risk of poverty decreased from
22.5% in 2022 to
20.2% in 2023, benefiting nearly 29,000 more individuals. Still, the rise in perceived deprivation in 2024 highlights ongoing economic struggles. Epp Remmelg emphasized that income inequality remains a significant concern, as vulnerable groups still experience high poverty rates. The elderly living alone and single parents improved but are still at risk. Regions like Ida-Viru show disparities, indicating the need for targeted support. Policymakers must address these gaps to sustain economic growth and ensure all citizens thrive.
