Flourishing middle classes in the emerging world reduce global inequality

The latest research (2 March 2015) by BBVA, a Spanish bank, suggests the following -

(a) A low middle class citizen becomes today’s worldwide median;

(b) By 2025, middle classes will comprise two-thirds of world population, doubling the share in 2000;

(c) Emerging economies will become more predominant in wealthier segments, growing from 24% globally in 2000 to 67% (or 2 billion people);

(d) Since 2000, Asia has been by far the largest contributor to reshaping the world’s income distribution. 2.8 billion in the poor and low-income segment will halve by 2025. 2.0 billion people will belong to the three wealthier segments;

(e) The share of the wealthier segments are also on the rise in Latin America and Emerging Europe, while income distribution is likely to remain relatively more limited in the developed world and Africa; 

(f) Inequality on the global scale will vastly reduce by 2025. As a result, the low middle class will become predominant with a population share of 39% (or 3.1 billion people), closely followed by the sum of the three wealthier segments (37%, 3 billion) and well above the lowest segment (24%, 1.9 billion);

(g) A dramatic reshaping of global consumer business will ensure away from basic products and services. 

Download Flourishing Middle Classes - BBVA research March 2015