Special Report
Countries With the Widest Gaps Between Rich and Poor
Published:
Last Updated:
A recent United Nations report found that the vast majority of people around the world live in a country where income inequality is worsening — the richest residents have an increasingly large share of total wealth, while the poorest residents have made smaller gains in wealth or none at all.
Inequality is not just an issue for those with lower income levels. The disparity results in slower economic growth for the country as a whole. While no country has a perfectly equal society or income distribution, some nations stand out as having particularly wide gulfs between their richest and poorest residents.
To determine the countries with the widest gaps between the rich and the poor, 24/7 Wall St. reviewed data on the Gini coefficient — a measure of income inequality based on the distribution of income across a population — for 218 countries using information from World Bank.
The Gini coefficient measures income inequality on a 0 to 1 scale. A country where all income earned goes to one person would score 1, while a nation full of residents with the same income — would score 0. The Gini coefficient of most of the 115 countries for which there is data is lower than 0.4. Just 10 have a Gini index score of over 0.5, while 20 countries scored under 0.3. For context, the U.S. Gini coefficient is 0.414. The 29 countries on this list have a Gini index score of 0.420 or higher.
Nearly all of the countries with the widest income gaps are located either in South America or Africa. For a variety of reasons — including the lingering effects of many of these nations’ former status as colonies of wealthy countries — many countries on this list are governed by systems that unfairly favor those in power at the expense of most citizens. These countries tend to have relatively low incomes and small economies. These are the poorest countries in the world.
However, income inequality is not isolated to just low-income countries. The U.S. and other wealthy nations also have a fairly wide gap between the richest and poorest residents, and this issue tends to get worse during times of economic hardship. For instance, during the COVID-19 pandemic, while many hourly workers were furloughed or laid off, the wealthiest Americans added significantly to their personal fortunes. These are the billionaires that got richer during COVID.
Click here to see countries with the widest gaps between rich and poor.
Click here to read our detailed methodology.
29. Iran
> GDP per capita: $12,937 (103rd out of 186 countries)
> Poverty rate: % (.th out of 115 countries)
> Pct. of population living under $1.90 a day: 0.5% (70th out of 101 countries)
> Unemployment rate: 11.0% (47th out of 187 countries)
> Population: 82.9 million
[in-text-ad]
28. Philippines
> GDP per capita: $9,302 (118th out of 186 countries)
> Poverty rate: 16.7% (79th out of 115 countries)
> Pct. of population living under $1.90 a day: 2.7% (43rd out of 101 countries)
> Unemployment rate: 3.4% (163rd out of 187 countries)
> Population: 108.1 million
24/7 Wall St.
27. Cabo Verde
> GDP per capita: $7,489 (126th out of 186 countries)
> Poverty rate: 35.0% (28th out of 115 countries)
> Pct. of population living under $1.90 a day: 3.4% (38th out of 101 countries)
> Unemployment rate: 13.4% (32nd out of 187 countries)
> Population: 550,000
26. Uganda
> GDP per capita: $2,284 (172nd out of 186 countries)
> Poverty rate: 21.4% (58th out of 115 countries)
> Pct. of population living under $1.90 a day: 41.3% (12th out of 101 countries)
> Unemployment rate: 2.4% (174th out of 187 countries)
> Population: 44.3 million
[in-text-ad-2]
25. Argentina
> GDP per capita: $23,040 (65th out of 186 countries)
> Poverty rate: 35.5% (27th out of 115 countries)
> Pct. of population living under $1.90 a day: 1.5% (49th out of 101 countries)
> Unemployment rate: 11.7% (43rd out of 187 countries)
> Population: 44.9 million
24. Togo
> GDP per capita: $1,667 (178th out of 186 countries)
> Poverty rate: 55.1% (5th out of 115 countries)
> Pct. of population living under $1.90 a day: 51.1% (6th out of 101 countries)
> Unemployment rate: 4.1% (155th out of 187 countries)
> Population: 8.1 million
[in-text-ad]
23. Ghana
> GDP per capita: $5,652 (136th out of 186 countries)
> Poverty rate: 23.4% (51st out of 115 countries)
> Pct. of population living under $1.90 a day: 12.7% (26th out of 101 countries)
> Unemployment rate: 4.5% (140th out of 187 countries)
> Population: 30.4 million
22. Rwanda
> GDP per capita: $2,325 (169th out of 186 countries)
> Poverty rate: 38.2% (23rd out of 115 countries)
> Pct. of population living under $1.90 a day: 56.5% (5th out of 101 countries)
> Unemployment rate: 1.4% (181st out of 187 countries)
> Population: 12.6 million
21. South Sudan
> GDP per capita: $00 (0th out of 186 countries)
> Poverty rate: 76.4% (1st out of 115 countries)
> Pct. of population living under $1.90 a day: 76.4% (1st out of 101 countries)
> Unemployment rate: 12.7% (37th out of 187 countries)
> Population: 11.1 million
[in-text-ad-2]
20. Chile
> GDP per capita: $27,002 (60th out of 186 countries)
> Poverty rate: 8.6% (105th out of 115 countries)
> Pct. of population living under $1.90 a day: 0.3% (77th out of 101 countries)
> Unemployment rate: 11.5% (45th out of 187 countries)
> Population: 19.0 million
19. Malawi
> GDP per capita: $1,107 (184th out of 186 countries)
> Poverty rate: 51.5% (8th out of 115 countries)
> Pct. of population living under $1.90 a day: 69.2% (2nd out of 101 countries)
> Unemployment rate: 6.0% (105th out of 187 countries)
> Population: 18.6 million
[in-text-ad]
18. Lesotho
> GDP per capita: $2,824 (163rd out of 186 countries)
> Poverty rate: 49.7% (10th out of 115 countries)
> Pct. of population living under $1.90 a day: 27.2% (20th out of 101 countries)
> Unemployment rate: 24.6% (3rd out of 187 countries)
> Population: 2.1 million
24/7 Wall St.
17. Mexico
> GDP per capita: $20,944 (69th out of 186 countries)
> Poverty rate: 41.9% (16th out of 115 countries)
> Pct. of population living under $1.90 a day: 1.7% (48th out of 101 countries)
> Unemployment rate: 4.7% (130th out of 187 countries)
> Population: 127.6 million
15. Ecuador
> GDP per capita: $11,879 (111th out of 186 countries)
> Poverty rate: 25.0% (40th out of 115 countries)
> Pct. of population living under $1.90 a day: 3.6% (37th out of 101 countries)
> Unemployment rate: 6.2% (102nd out of 187 countries)
> Population: 17.4 million
[in-text-ad-2]
15. Paraguay
> GDP per capita: $13,246 (100th out of 186 countries)
> Poverty rate: 23.5% (49th out of 115 countries)
> Pct. of population living under $1.90 a day: 0.9% (60th out of 101 countries)
> Unemployment rate: 7.6% (80th out of 187 countries)
> Population: 7.0 million
14. Benin
> GDP per capita: $3,433 (158th out of 186 countries)
> Poverty rate: 38.5% (21st out of 115 countries)
> Pct. of population living under $1.90 a day: 49.6% (8th out of 101 countries)
> Unemployment rate: 2.5% (172nd out of 187 countries)
> Population: 11.8 million
[in-text-ad]
12. Honduras
> GDP per capita: $5,981 (134th out of 186 countries)
> Poverty rate: 48.3% (12th out of 115 countries)
> Pct. of population living under $1.90 a day: 14.8% (22nd out of 101 countries)
> Unemployment rate: 9.4% (56th out of 187 countries)
> Population: 9.7 million
12. Costa Rica
> GDP per capita: $21,738 (68th out of 186 countries)
> Poverty rate: 21.0% (60th out of 115 countries)
> Pct. of population living under $1.90 a day: 1.0% (57th out of 101 countries)
> Unemployment rate: 17.1% (15th out of 187 countries)
> Population: 5.0 million
11. Panama
> GDP per capita: $32,851 (48th out of 186 countries)
> Poverty rate: 22.1% (55th out of 115 countries)
> Pct. of population living under $1.90 a day: 1.2% (55th out of 101 countries)
> Unemployment rate: 10.2% (51st out of 187 countries)
> Population: 4.2 million
[in-text-ad-2]
10. Zimbabwe
> GDP per capita: $2,961 (162nd out of 186 countries)
> Poverty rate: 38.3% (22nd out of 115 countries)
> Pct. of population living under $1.90 a day: 39.5% (13th out of 101 countries)
> Unemployment rate: 5.7% (111th out of 187 countries)
> Population: 14.6 million
9. St. Lucia
> GDP per capita: $16,132 (84th out of 186 countries)
> Poverty rate: 25.0% (40th out of 115 countries)
> Pct. of population living under $1.90 a day: 4.6% (31st out of 101 countries)
> Unemployment rate: 17.1% (14th out of 187 countries)
> Population: 183,000
[in-text-ad]
7. Colombia
> GDP per capita: $16,012 (85th out of 186 countries)
> Poverty rate: 35.7% (26th out of 115 countries)
> Pct. of population living under $1.90 a day: 4.9% (30th out of 101 countries)
> Unemployment rate: 15.4% (23rd out of 187 countries)
> Population: 50.3 million
7. Angola
> GDP per capita: $6,966 (130th out of 186 countries)
> Poverty rate: 32.3% (32nd out of 115 countries)
> Pct. of population living under $1.90 a day: 49.9% (7th out of 101 countries)
> Unemployment rate: 7.7% (79th out of 187 countries)
> Population: 31.8 million
6. Botswana
> GDP per capita: $18,553 (76th out of 186 countries)
> Poverty rate: 0.0% (.th out of 115 countries)
> Pct. of population living under $1.90 a day: 14.5% (23rd out of 101 countries)
> Unemployment rate: 17.7% (13th out of 187 countries)
> Population: 2.3 million
[in-text-ad-2]
5. Brazil
> GDP per capita: $15,300 (89th out of 186 countries)
> Poverty rate: 0.0% (.th out of 115 countries)
> Pct. of population living under $1.90 a day: 4.6% (31st out of 101 countries)
> Unemployment rate: 13.7% (30th out of 187 countries)
> Population: 211.0 million
4. Eswatini
> GDP per capita: $9,003 (122nd out of 186 countries)
> Poverty rate: 58.9% (3rd out of 115 countries)
> Pct. of population living under $1.90 a day: 29.2% (19th out of 101 countries)
> Unemployment rate: 23.4% (4th out of 187 countries)
> Population: 1.1 million
[in-text-ad]
3. Sao Tome and Principe
> GDP per capita: $4,145 (149th out of 186 countries)
> Poverty rate: 66.7% (2nd out of 115 countries)
> Pct. of population living under $1.90 a day: 35.6% (16th out of 101 countries)
> Unemployment rate: 13.9% (27th out of 187 countries)
> Population: 215,000
24/7 Wall St.
2. Zambia
> GDP per capita: $3,624 (154th out of 186 countries)
> Poverty rate: 54.4% (7th out of 115 countries)
> Pct. of population living under $1.90 a day: 58.7% (4th out of 101 countries)
> Unemployment rate: 12.2% (38th out of 187 countries)
> Population: 17.9 million
1. Namibia
> GDP per capita: $10,064 (117th out of 186 countries)
> Poverty rate: 17.4% (74th out of 115 countries)
> Pct. of population living under $1.90 a day: 13.8% (25th out of 101 countries)
> Unemployment rate: 20.4% (6th out of 187 countries)
> Population: 2.5 million
Methodology
To determine the countries with the widest gaps between rich and poor, 24/7 Wall St. reviewed data on the Gini coefficient for 218 countries from the World Bank. Countries were ranked on the Gini coefficient, a measure of income inequality based on the distribution of income across a population, using the most recent year of data from 2015 to 2019. Supplemental data on population in 2019; GDP per capita in 2019, estimated using the purchasing power parity method; and percentage of the population living on less than $1.90 a day in 2011 international prices, using the latest year of data from 2015 to 2019, came from the World Bank.
Essential Tips for Investing (Sponsored)
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
