mated using the World Bank Atlas method,2 and the classification in table E is based on data for 2012. South Africa PO Box 12082; Hatfield 0028; Pretoria . Lower-middle income: between $1,036 and $4,045. For example, the data shows that while . Middle Income Countries Home Overview Excluding South Africa, the continent's largest economy, growth in Sub-Saharan Africa is forecast to rise to 6%. The ruling African National Congress (ANC) has driven the policy agenda since 1994 until August 2016, when the country held the most competitive local government election since 1994, in which the ANC-lost . The IMF and the World Bank have developed a framework to help guide countries and donors in mobilizing the financing of LICs' development needs, while reducing the chances of an excessive build-up of debt in the future. South Africa's political transition is known as one of the most remarkable political feats of the past century. The World Bank provides financing and services to low and middle-income countries to support development and change. Low-Income Nations. Following 1996, at the end of over twelve years of international sanctions, South Africa's Gross Domestic Product (nominal) almost tripled to its . between revenues by strengthening a strong middle class. Nigeria, Angola and South Africa (AEO, 2011). However, in contrast, Gabon 's middle class is expected to grow 128% and . Approximately 600 American businesses operate in South Africa, and many of those use South Africa as a regional headquarters. And, there has been no decrease in wealth inequality in the 26 years since democracy. KEYWORDS: SOUTH AFRICA, POVERTY, INCOME DISTRIBUTION, LABOUR MARKET JEL: O15, D31, D63, J31, N37 . The aim of our research is to investigate to what extent the middle class measured by income and by assets differ in size across individual African countries. Sadly South Africa's growth is about as flat as a pancake. According to Stats SA, it was established that while South Africa's population is growing on a year‐on ‐ year basis (from 53 million in 2013 to 56.5 million . World Bank using IDREA/SSAPOV/GMD Source: World Bank using IDREA/SSAPOV/GMD Notes: N/A missing . Apartheid, the government-enforced segregation and . Why this tool is important Most people are wrong about where they are located in the income distribution. Furthermore, individuals having 624 . The income classification is based on a measure of national income per person, or GNI per capita, calculated using the Atlas method. The World Bank assigns the world's economies to four income groups—low, lower-middle, upper-middle, and high-income countries. Methodology. This amounts to an increase of 667.9 million (or 47.8 percentage points). Kosovo Upper middle income Yemen, Rep. Low income South Africa Upper middle income Zambia Lower middle income Zimbabwe Lower middle income . Author: Patricia Mencias While the income classification itself is not used for operational decision-making by the World Bank and by itself has no formal official significance, it uses the same methods to calculate GNI per capita and adjust the thresholds that are used in the operational guidelines. South Africa At-A-Glance. The World Bank in Middle Income Countries Middle Income Countries are a diverse group by size, population and income level, and are home to 75% of the world's population and 62% of the world's poor. country with one-third of South Africa‟s per capita income (World Bank 1997). South Africa ZAF Spain ESP Sri Lanka LKA St. Kitts and Nevis KNA St. Lucia LCA St. Vincent and the Grenadines . South Africa is the largest U.S. trade partner in Africa, with a total two-way goods trade of $17.8 billion in 2019. Download the country classifications file (MS Excel, 86KB). The World Bank assigns the world's economies to four income groups—low, lower-middle, upper-middle, and high-income countries. The South Africa Country Partnership Framework (CPF) for 2022-2026, approved by the World Bank Board on July 22, 2021, continues the theme of the past three Country Partnership Strategies to support South Africa in its quest to complete the Post-Apartheid socio-economic transition. growth, income, level of urbanisation and the globalisation of the recyclables market. South Africa is the most unequal country in the world, with race playing a determining factor in a society where 10% of the population owns more than 80% of the wealth, a World Bank report said . Low-income countries (LICs) have often struggled with large external debts. Definition: Percentage share of income or consumption is the share that accrues to . The latest available estimates of income for each region, such as for 2018 for Europe and Central Asia and 2015 for the Middle East and North Africa, are extrapolated to 2020 using two sets of growth estimates: the forecasts . This map classifies all World Bank member economies and all other economies with populations of more than 30,000 for operational and analytical purposes. South Africa gni per capita for 2020 was $5,410, a 10.43% decline from 2019. According to the World Bank (2014a), in 2013, the average per capita GNI of a low-income nation was $528 per capita and the total population was 796,261,360, with 28 percent located in urban areas. Each year on July 1st, we update the classifications. Wages in South Africa is expected to be 21600.00 ZAR/Month by the end of this quarter, according to Trading Economics global macro models and analysts expectations. 4.9%. This article is a summary of the policy paper "Brazil, South Korea, and Global Value Chains: a Tale of Two Countries" by Otaviano Canuto, published by the Center for Macroeconomics and Development, in partnership with the Korea Foundation and Fundação Getulio Vargas, on August 17, 2020. The primary World Bank collection of development indicators, compiled from officially-recognized international sources. Term of Income Classification FY21 (July 2020) $1,035 or less $1,036 to $4,045 $4,046 to $12,535 until 1 July 2021 $12,536 or more World Bank list of economies (June 2020) This table classifies all World Bank member countries (189 . Equatorial Guinea is expected to grow only 22% (116,000) and Mauritius, 20% (147,000), over the next decade. Though a new black middle class is . The economy of South Africa is the third largest in Africa and the most industrialized, technologically advanced, and diversified economy in Africa overall. The 2020 GNI per capita thresholds are: Low income: less than $1,036. 4.9%. For the current 2022 fiscal year, low-income economies are defined as those with a GNI per capita, calculated using the World Bank Atlas method, of $1,045 or less in 2020; lower middle-income economies are those with a GNI per capita between $1,046 and $4,095; upper middle-income economies are those with a GNI per capita between $4,096 and . In the long-term, the South Africa Average Monthly Gross Wage is projected to trend around 21600.00 ZAR/Month in 2023, according to our econometric models. The World Bank classifies economies for analytical purposes into four income groups: low, lower-middle, upper-middle, and high income. Rep. COD Sub-Saharan Africa Low income IDA HIPC 46 Congo, Rep. COG Sub-Saharan Africa Lower middle income . In Pew's analysis, there's a separate upper-middle-income band made up of those earning $20.01 to $50 a day. The value for Income share held by third 20% in South Africa was 8.20 as of 2014. For example, Afghanistan, Ethiopia, and Yemen are considered low-income countries. Knowing a country's GNI per capita is a good first step toward understanding the country's economic strengths and needs, as well as the general standard of living enjoyed by the average citizen. Brazil experienced a year-on-year average growth rate of 1.19% for the time period 2000 to 2017. The list of the least developed countries (LDCs) is decided upon by the United However, Africa remains overwhelmed by unequal income and wealth distribution. Predicted growth rates for the above mentioned countries for 2018 are as follows: World 3.9%. . According to the World Bank, middle-income countries (MICs) are defined as economies with a Gross National Income (GNI) per capita . PPI Visualization Dashboard. Data on South Africa across agriculture,development,economy,education,energy,environment,finance,government,health,innovation and technology,jobs,society. When apartheid came to an end in 1994, South Africa was measured as the world's most unequal country. Secondary education in South Africa is six years in duration (grades 7 to 12), and is divided into two phases, lower and upper secondary school. From 2001-2010, six of the world's ten . The categories are used to show how different groups of countries are doing against measures such as reducing poverty, growth, increasing income per head of population, and so on. middle class can be perceived: growing inequality amongst blacks is associated with growing . As of 2021, an individual living in South Africa with less than 890 South African rands (roughly 62.8 U.S. dollars) per month was considered poor. Four economies in the top ten including top three have gained. Some countries, such as Nigeria and Pakistan, are IDA-eligible based on per capita income levels and are also . Lower Middle Income Class Poverty Line 723.1 in Angolan kwanza (2018) or US$3.20 (2011 PPP) per day per capita . The World Bank last year deemed South Africa the world's most unequal society, estimating that the top 10% owned 70% of the nation's assets in 2015. . The economic outlook for Sub-Saharan Africa (SSA) is positive, with growth rising to 5.3% in 2012, and 5.6% in 2013, over the pre-crisis average level of 5%. They change for two reasons: 1. The Human Capital Index (HCI) database provides data at the country level for each of the components of the Human Capital Index as well as for the overall index, disaggregated by gender. If we collapse upper and lower middle class, a total of 29.7% of South Africans and 24.4% of black South Africans identified themselves as belonging . Tel: 27 (0) 12- 346- 6365 Fax: 27 (0) 12- 346- 5232 Email: RR-ZAF@imf.org Ms. Sandra du Plessis, Office Manager World Bank country classifications by income level: The World Bank classifies the countries based on GNI every year on July 1. Upper-middle income: between $4,046 and $12,535. Each report provides in-depth analysis and policy recommendations on a specific and important aspect of development—from agriculture, the role of the state, transition . 2019 in this case). In South Africa, the average household net adjusted disposable income per capita is 9 338, much lower than the OECD average of USD 30 490. Africa is experiencing fast economic growth. South Africa gni per capita for 2018 was $5,750, a 6.28% increase from 2017. These five charts reveal the state of the nation: 1. 467 Fehrsen Street, Brooklyn. South Africa qualifies for preferential trade benefits under the African Growth and Opportunity Act as . For GE(0), GE is more sensitive to changes in the lower tail of the distribution, and for higher values like GE(2), the measure is more sensitive to changes that affect the upper tail. The classifications are updated each year on July 1 and are based on GNI per capita in current USD (using the Atlas method exchange rates) of the previous year (i.e. (Note that $50 per day falls shy of what a minimum wage worker in the U.S. takes . We base this assignment on Gross National Income (GNI) per capita (current US$) calculated using the Atlas method. For this purpose it uses gross national income (GNI) per capita data in U.S. dollars, converted from local currency using the World Bank Atlas method, which is applied to smooth exchange rate fluctuations. Lower secondary (also known as the "senior phase") lasts through grade 9, and is mandatory. Research and development expenditure (% of GDP), % of GDP. The PPI Visualization Dashboard is a tool which allows users to visualize the data in several ways by selecting certain filters, such as regions, countries, sectors, and project status. Image: World Bank. Data for South Africa, Upper middle income from The World Bank: Data In this year's list, India continues to be classified as the lower . From table 2.8 in the World Bank report, we can deduce that the strictly redistributive taxation of R207 000 in average market income of the top 10% of income earners was 2.9% in 2011. These estimates are based on the Center's analysis of World Bank data on the distribution of people by either income or consumption levels in seven major global regions. About the Collection. One way to track Africa's progress is by charting the number of countries that have achieved "Middle Income status". It presents the most current and accurate global development data available, and includes national, regional and global estimates. The World Bank classifies economies of countries as low income, middle income (subdivided into lower, middle, and upper middle), or high income . The GNI per capita is the dollar value of a country's final income in a year, divided by its population. The World Bank classifies the world's economies into four income groups — high, upper-middle, lower-middle, and low. (ADI 2008/2009, World Bank). The middle class has particularly suffered from South African economy's inability to create new jobs. 3Y. South Africa gni per capita for 2019 was $6,040, a 5.04% increase from 2018. Region : The PPI database uses the World Bank regional groupings In four easy clicks, you can find out where you are in South Africa's income distribution and how you compare to the rest of the population. Income share held by third 20%. For comparison purposes, we're only showing . It is informed by the Systematic Country Diagnostic (SCD) of 2019 developed by the World Bank Group (WBG) in . Sep 20, 2021. In the World Bank's definition, you become a middle-income country (or "MIC") when you cross the $1,000 GDP per capita threshold. South Africa's household debt to income remains high at 75.4%. The index measures the amount of human capital that a child born today can expect to attain by age 18, given the risks of poor health and poor . The Debt Sustainability Framework (DSF) was introduced in April 2005 and is periodically reviewed. South Africa is an upper-middle-income economy, one of only eight such countries in Africa. Figure 1.13: Growth projections for South Africa and other EMDEs 21 Figure 2.1: Inequalities in 101 countries, 2013 25 Figure 2.2: South Africa's polarization 26 Figure 2.3: South Africa's human opportunities, 2015 28 Figure 2.4: Inequality measurement over time 28 Figure 2.5: Labor market status and skills increasingly contribute to inequality 29 Based on Pew's income band classification, China's middle class has been among the fastest growing in the world, swelling from 39.1 million people (3.1 percent of the population) in 2000 to roughly 707 million (50.8 percent of the population) in 2018. The parameter α in the class represents the weight given to distances between incomes at different parts of the income distribution, and can take any real value. For example, the data shows that while . The World Bank groups economies into one of four categories: low income, lower-middle income, upper-middle income, high income. The classification is updated each year on July 1 st. . The Impact of Racial Inequality in South Africa. The classifications are updated each year on July 1 and are based on GNI per capita in current USD (using the Atlas method exchange rates) of the previous year (i.e. Low-income economies are primarily found in Asia and Africa (World Bank 2021), where most of the world's population lives. Source: World Values Survey, 2013. Pretoria, 0181. In each country, factors such as income growth, inflation, exchange rates, and population change, influence GNI per capita. South Africa The Human Capital Index (HCI) database provides data at the country level for each of the components of the Human Capital Index as well as for the overall index, disaggregated by gender. South Africa is one of the most unequal countries in the world in terms of wealth, according to the preliminary findings of a paper by Aroop . 2. South Africa. The repository contains official documents and reports which are made available to the public in accordance with the Bank's Access to Information Policy to better share the institution's knowledge base. To construct the African income middle class, we use income data available from the World Bank's PovcalNet (2018). World Bank list of economies (June 2020) (Bold indicates a change of classification) x x Economy Code X Region Income group Lending category Other x xx x x x x x 44 Comoros COM Sub-Saharan Africa Lower middle income IDA HIPC 45 Congo, Dem. MICs also represent about one-third of global GDP and are major engines of global growth. While around 2.3 million South Africans escaped poverty between 2006 and 2015, the 2018 World Bank report . Number of Countries in each group: South Africa 335.44 ( 2020 billion) GDP per capita (current US$) Middle income 5,217.0 South Africa 5,655.9 ( 2020) GDP growth (annual %) Middle income -1.4 South Africa -6.4 ( 2020) Unemployment, total (% of total labor force) (modeled ILO estimate) Middle income 6.3 South Africa 33.6 ( 2021) Inflation, consumer prices (annual %) Middle income 4.3 The project cycle is the . The classification of countries is determined by two factors: The World Bank's World Development Report, published annually since 1978, is an invaluable guide to the economic, social, and environmental state of the world today. What It Takes to Become A Middle-Class Country. Compared to the rest of the continent, South Africa's rate of financial inclusion - 90% -is high, yet the microfinance institutions (MFIs) remain critically important for low-income households who are unavailable to access appropriate financial products from commercial banks. IDA also supports some countries, including several small island economies, that are above the operational cutoff but lack the creditworthiness needed to borrow from the International Bank for Reconstruction and Development (IBRD). To keep the dollar thresholds which separate the classifications fixed in real terms, we adjust them for inflation. This forecast would change in the event of a deteriorating global economy. Tanzania is the second-largest economy in East Africa and becomes the second East African Community member state to achieve the middle-income status after Kenya. High income: greater than $12,535. Sub-Saharan Africa April 2020 14.7 21.5 26.9 POVERTY Period Poverty Economist: Carlos da Maia (million) Number of Poor 2018 2018 . Resident Representative for South Africa Max Alier. South Africa. the Waste Classification and Management . When it comes to income , the World Bank divides the world's economies into four income groups: high, upper-middle, lower-middle, and low. The main criterion for classifying economies is the gross national income (GNI) per capita. Income inequality in South Africa has deepened. World. It's still one of the world's "most unequal" countries. This tool was designed to help people understand the nature and extent of South Africa's . West Bank and Gaza Lower middle income French Polynesia High income Qatar High income Romania Upper middle income . Office Information. Low-Income Nations. United States 2.7%. South Korea has climbed the income per capita ladder up to high levels, while Brazil may be considered . The World Bank recently released a 147-page report extensively detailing the root causes of economic struggle in South Africa. Nepal has the highest year-on-year average growth rate at 198.12% whereas Indonesia has lowest year-on-year average growth rate at -16.13%. Income inequalities translate into . Gross national income (GNI) per capita is the main indicator of how well off a country is and where it sits in the four categories. It should be reflecting the average before tax income of a country's citizens. Economies are divided among income groups according to 2015 gross national income (GNI) per capita, calculated using the World Bank Atlas method. Australia; . As the graph below shows, over the past 21 years this indicator reached a maximum value of 9.90 in 2000 and a minimum value of 7.50 in 2005. The World Bank groups economies into one of four categories: low income, lower-middle income, upper-middle income, high income. Top Gainers in 2020: Ireland has added $3368 in 2020, followed by Taiwan Province of China ($2370), Switzerland ($1163), Luxembourg ($1082) and Guyana ($733). East Asia & Pacific. With growth and predicted growth that is not nearly sufficient to drag millions of South Africans out of both poverty and unemployment. A list of associated projects is also displayed at the bottom of the page. The index measures the amount of human capital that a child born today can expect to attain by age 18, given the risks of poor health and poor . Household net wealth is the total value of a household's financial and non-financial worth, such as money or shares held in bank accounts, the principal residence, other real estate properties, vehicles . Researchers found that one of the most prominent factors behind poverty is racial inequality in South Africa. GDP per capita of 39 economies increased in 2020. The Documents & Reports (D&R) site is an official disclosure mechanism for the World Bank Group's final reports. The World Bank defines low-income countries as nations whose per capita GNI was $1,035 per capita or less in 2019. The categories are used to show how different groups of countries are doing against measures such as reducing poverty, growth, increasing income per head of population, and so on. To achieve a significant reduction in the country's unemployment rate, the World Bank . Students typically begin lower secondary at age 12 or 13. Economic Indicators The PPI Projects database uses a number of World Bank Group indicators to characterize each country's economy -- the location, income per capita, IDA status and supply of infrastructure services. Just 3 500 people - 0.01% of the population - own 15% of total wealth in South Africa, according to a new study. About 170 million out of Africa's 1.3 billion people are now classified as middle class. Net national income Indicator: 10 200 Total US dollars/capita 2020 South Africa US dollars/capita: Total US dollars/capita 2001-2020 South Africa (red), OECD . According to the latest figures from the World Inequality Database, the top 1% of South African earners take home almost 20% of all income in the . From 2001, these countries include the Euro area, Japan, the United Kingdom, and the United States. Other analytical groups, based on geographic regions and levels of external debt, are also used. 2020 in this case). Annual spending power is expected to grow around 20% in Equatorial Guinea from $6.2 billion to $7.5 billion and 44% in Mauritius from $15 billion to $21 billion. The World Bank defines low-income countries as nations whose per capita GNI was $1,045 per capita or less in 2013. Development projects are implemented by borrowing countries following certain rules and procedures to guarantee that the money reaches its intended target. Top Losers in 2020: Out of 194 economies, gdp (nominal) per capita 155 . To be sure, even at $1,000 per capita, many of these countries still have high levels . With 189 member countries, staff from more than 170 countries, and offices in over 130 locations, the World Bank Group is a unique global partnership: five institutions working for sustainable solutions that reduce poverty and build shared prosperity in developing countries. But about eight million of them could be thrust into poverty because of the coronavirus and its economic .