- 87% of economists expect income gap to widen due to Corona
- 1,000 richest billionaires took just 9 months to recover from pandemic outbreak
- It could take up to 10 years for the poorest to reach pre-Corona levels
- 40% of the population in 23 countries of the Global South eating less and worse since the Corona crisis
- Between 2011 and 2017, wages in G7 countries increased by 3%, whereas dividends increased by 31% on average
87% of economists expect the pandemic to lead to higher income inequality. Particularly dramatic consequences are expected in developing and emerging countries, but even Germany could face a great wave of debt. This is shown in a new infographic by Block-Builders.net, which illustrates changes around the economic divide.
It took just 9 moths for the 1,000 richest billionaires to recover financially after the outbreak of the pandemic. By contrast, it could take up to 10 years for the world’s poorest people to reach pre-Corona levels.
The 10 richest Germans owned around $179.3 billion US in February 2019. This compares to $242 billion US in December of last year. And all of this in a period in which many people have suffered hardship as a result of the pandemic. As the infographic shows, the real wave of debt could be just around the corner.
But while in Germany there is at least an economic safety net, the tragic scale of the pandemic is most evident in the 23 countries of the global South. Here, 40% of citizens report eating less and more monotonously since the outbreak of the pandemic.
The number of those who have less than 1.90 US dollars per day at their disposal – worldwide, it should be noted – also rose from 645 to 733 million. The number had been steadily decreasing year after year in previous few years, but the Corona crisis has set in motion a reversal of the trend.
While numerous businesses in gastronomy, retail and the like currently fear for their livelihoods, the situation on the stock exchange is completely different. Within the last 12 months, there has been a real price rally for various investments. The pandemic seems to be playing into investors’ hands financially. On the one hand. But on the other, securities were already a lucrative investment even before the crisis. Wages in the leading 7 industrialised countries rose by an average of 3% between 2011 and 2017, while dividends increased by an average of 31%.
“The threat to economic livelihoods should be taken seriously,” argues Block-Builders analyst Raphael Lulay. “However, it is important not to pit rich against poor, as this is not a zero-sum game. Despite any injustices, we should not forget that investments also offer many opportunities to the less wealthy”.
The full story with the infographic, facts and more statistics: