China’s wealth disparity worsens as the poorest 20 percent of the population accounts for only 4.7 percent of overall income

The Institute of Advanced Studies of Shanghai University of Finance and Economics has published a report showing that the problem of wealth gap in China is worsening.

According to the report, although China’s economic output (GDP) has reached the second highest in the world and its GDP per capita has exceeded 10,000 USD, there is still a big gap compared to the GDP per capita of developed countries which is over 50,000 USD. In terms of average, China is already an upper middle-income country, but in terms of median, the problem of wealth gap in China is worsening.

Data show that the poorest 20% of China’s total population now accounts for only 4.7% of overall income or consumption, while the richest 20% of the total population accounts for up to 50% of overall income or consumption, and the average household leverage (debt level) has risen to 64.1%.