Median Household Income Overview
The indicator refers to the median income of a household in a country. Median household income divides households into two equal segments, such that the first half earns less than the median income while the second half earns more. The median income is defined in PPP (Purchasing Power Parity, in Current International Dollars) terms so as to avoid exchange rate fluctuations due to inflationary tendencies across countries. The median income level is generally accepted as a better indication of well-being or actual income distribution as it is not skewed by disproportionate data.
According to GlobalData, the top ten countries with the highest median household income in the world are Singapore, Iceland, Norway, Sweden, Ireland, Luxembourg, Belgium, the United States, Cyprus, and Australia. The average median household income (PPP) was $40,094 in 2021.
South Africa’s Median Household Income Highlights in 2021
South Africa’s median household income (PPP) hit $12,471 in 2021, an increase of 2.4% over the previous year. Between 2015 to 2021, South Africa's median household income increased by 10.4%.
The influx of COVID-19 cases and the accompanying decline in income have further depreciated the social gains made by South Africa in the past few decades. The COVID-19 outbreak has worsened the lives of those who belong to the poor strata of society in South Africa. The prolonged lockdown has threatened the sustainability of families whose income levels have been low. People who have been working in unorganized sectors are facing unemployment due to the lockdown. Most of families have lost their main source of income.
Key elements that are influencing the Global Economy
Increased COVID-19 impact:
As a result of Omicron, a new variant of COVID-19, more cases have been reported worldwide, resulting in the disruption of supply chain management. However, the global vaccination drive has reduced the fatality rate from the coronavirus.
Rising Inflation and Interest Rates:
As a result of rising inflation rates in both developing and advanced economies, central banks have been forced to tighten monetary policy and raise interest rates to keep prices from rising. However, a steady increase in interest rates could cause financial distress in some economies.
Don’t wait - discover a universe of connected data & insights with your next search. Browse over 28M data points across 22 industries.
Access more premium companies when you subscribe to Explorer