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.
Hong Kong’s Median Household Income Highlights in 2021
Hong Kong’s median household income (PPP) hit $59,336 in 2021, an increase of 2.1% over the previous year. Between 2010 to 2021, Hong Kong's median household income (PPP) increased by 39.7%.
According to the World Intellectual Property Organization, Global Innovation Index (2021), Hong Kong ranked 14th out of 132 economies. The country ranked 13th among 51 high-income group countries. In addition, the country ranked fifth among 17 economies in Southeast Asia, East Asia, and Oceania.
The level of income inequality in Hong Kong is higher than in countries such as Singapore, China, and Vietnam. According to GlobalData, the Gini Index of Hong Kong stood at 47.3 in 2016, compared to Singapore (45.8), Vietnam (43.1), and Taiwan, Province of China (33.6) in 2016. The Gini Index ranges from zero (complete equality of income) to 100 (complete inequality).
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.
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