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Gini Index in Top 10 Economics from 1974 to 2023

UID: EC-20240908-COMP-03

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Source

World Bank

Last Updated

September 9, 2024

Time Range

1974-2023

Periodicity

Annual

Overview

The Gini index quantifies the degree of inequality in the distribution of income (or sometimes consumption) among individuals or households within an economy. It compares the actual income distribution to a perfectly equal one. This is visualized through the Lorenz curve, which charts the cumulative share of total income against the cumulative share of recipients, starting from the poorest. The Gini index is derived from the area between the Lorenz curve and the line representing absolute equality, measured as a percentage of the total area beneath that line. A Gini index of 0 indicates perfect equality, while 100 signifies complete inequality.

Trends & Insights

The U.S. shows a general trend of increasing inequality over the period. Starting at 35.5 in 1974, the Gini index rose steadily, reaching a peak of 41.5 in 2014 and 2019. There’s a notable decrease to 39.7 in 2020, possibly due to pandemic-related economic measures, with a slight increase to 39.8 in 2021. This overall upward trend suggests widening income gaps in the U.S. over the past five decades. Data for India is sporadic but reveals an overall increase in inequality. From 33.2 in 1977, it rose to 35.9 in 2017, before decreasing to 32.8 in 2021. This recent decline could indicate some success in inequality reduction efforts or economic changes due to the pandemic. China’s data starts from 1990 with a Gini index of 32.2. It shows a significant increase in inequality, peaking at 43.7 in 2010, before gradually declining to 37.1 in 2020. This trend aligns with China’s rapid economic growth and subsequent efforts to address inequality.

Germany shows relatively lower and more stable inequality levels compared to other countries in the list. Its Gini index has gradually increased from 29.5 in 1991 to 31.7 in 2019, indicating a slight widening of income gaps but maintaining comparatively low inequality. Data for Japan is limited, but available figures (34.8 in 2008, 32.1 in 2010, 32.9 in 2013) suggest relatively low inequality levels compared to other major economies. The UK shows significant fluctuations. Starting at 29 in 1974, it rose to peaks of 36.8 in 1999 and 38.8 in 2000, before declining to 32.4 in 2021. This suggests periods of widening and narrowing income gaps over the decades. Canada’s Gini index has remained relatively stable, ranging between 31 and 34 throughout the period, indicating consistent, moderate levels of income inequality. France shows a trend of decreasing inequality, with the Gini index falling from 35.9 in 1975 to 31.5 in 2021, suggesting effective income redistribution policies. Brazil consistently shows the highest levels of inequality among these countries. Starting at 57.9 in 1981, it peaked at 63.3 in 1989 before gradually declining to 52 in 2022. Despite this improvement, Brazil’s inequality remains significantly higher than other countries in the list. Italy’s Gini index has fluctuated between 29.2 (1982) and 36.7 (1998), settling at 34.8 in 2021. This suggests varying levels of income inequality over the years with a slight overall increase.

While some countries (e.g., U.S., China) have seen significant increases in inequality, others (e.g., France, Brazil) have experienced overall decreases. Developed economies generally show lower Gini indices, but some (notably the U.S.) have seen substantial increases in inequality. Fluctuations in Gini indices often correlate with major policy changes or economic events, suggesting the impact of government interventions on income distribution. In the most recent years, there seems to be a convergence of Gini indices for many countries towards the 30-35 range, possibly indicating similar challenges and policy approaches across different economies. Significant gaps in data for some countries (e.g., India, China in earlier years) make it challenging to draw comprehensive conclusions for the entire period.

In conclusion, this data reveals complex and varied trends in income inequality across major economies over the past five decades. While some countries have made progress in reducing inequality, others have seen widening income gaps. The recent convergence of Gini indices for many countries suggests that addressing income inequality remains a common challenge for both developed and developing economies. Future economic policies and global events will likely continue to shape these trends, making ongoing monitoring of income inequality crucial for understanding global economic dynamics.

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Citation

Please cite this article using proper attribution to 360 Analytika when referencing or sharing our content.

Chowdhury P. Gini Index in Top 10 Economics from 1974 to 2023. 360 Analytika. Published September 9, 2024. https://360analytika.com/gini-index-in-top-10-economics-from-1974-to-2023/

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