Global Gap Narrows as Living Standards Rise Worldwide

Global inequality has fallen sharply since 2000, as faster growth in lower-income countries has narrowed the gap in living standards worldwide.

“The world economy has kept getting more equal,” said economists analysing new global consumption data.

Across 194 economies, the spending ratio between the richest 10% and the poorest 50% has more than halved, from about 40 times in 2000 to around 18 today, while the share of the richest 1% has also declined. Much of the progress comes from rising incomes in low- and middle-income countries, with the gap between average spending in the United States and India shrinking from more than 16 times to less than eight over 25 years, reflecting broad gains in prosperity.