Rising Income Inequality: A Threat to Global Economic Stability?

In recent years, the income gap between the poorest and wealthier nations has been steadily widening. According to a report from the World Bank released on Monday, this trend is affecting half of the 75 poorest countries in the world. This marks the first time in this century that such a gap has grown, indicating a serious structural regression in the global economy.

The disparity between the richest and poorest nations has increased over the past five years. The deputy chief economist for the World Bank, Ayhan Kose, emphasized the severity of this reversal, stating that alarm bells are ringing for the global economy. One out of every three of the poorest countries are now in a worse economic situation than before the pandemic due to low investment and high inflation rates.

This sluggish economic growth is expected to continue in the coming years, exacerbating poverty and inequality in these vulnerable nations. The report highlights the urgent need for action to address this growing income gap and prevent further economic decline. Rising inequality poses a significant threat to global economic stability, requiring immediate attention and support from the international community.