Full Detailed Video: • What is the Middle Inc...
The middle income trap. This term is becoming an important as well as worrying topic of discussion for many countries.
If we put this together in simple words, the middle income trap is an economic development situation in which a country that attains a certain average income, gets stuck at that same level. While failing to graduate into the ranks of high-income countries.
The World Bank classifies the income levels in terms of per capita income. In which the low income countries are those with a per capita income lower than $1005. The middle-income group with a per capita income varying from $1006 to $12235. And the high income ones with $12236 or more per capita income.
For many countries the conversion from low income to a middle income country is usually very rapid. But after that, the economic growth is very slow. And they might observe the phenomenon of a “middle-income trap". In fact, out of 101 middle-income countries in 1960, approximately only 13 became high-income by 2008.
There are multiple factors which hold a country at the middle income level. To get a deeper understanding about this topic watch our detailed video linked above.
#middleincometrap #economics
12 сен 2024
