Economics · Poverty and Inequality

Consider a scenario where a country's Gini coefficient increases from 0.33 to 0.38 over two decades, even as poverty levels decline. Which of the following statements accurately interpret this context? 1. This indicates rising income inequality despite progress in poverty reduction. 2. Economic growth can initially increase inequality in the early stages of development (Kuznets Hypothesis). 3. A Gini coefficient value close to 1 indicates perfect equality. 4. Poverty and income inequality must always move in the same direction. Which of the statements given above are correct?