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.
Turkey’s Median Household Income Highlights in 2021
Turkey’s median household income (PPP) hit $26,640 in 2021, an increase of 2% over the previous year. Between 2010 to 2021, Turkey's median household income (PPP) increased by 10.7%.
Turkey has a very inequitable society, with disparities in household income and a high concentration of poverty. The absence of economic growth in the east could encourage migration to the large cities of the west, leading to urban congestion. There are wide income discrepancies in Turkish society, with income per family varying widely between major urban areas, such as Istanbul, Ankara, and Izmir, and the provincial towns and rural communities. Turkey has not been successful in limiting disparities in income and wealth and restricting poverty. The country’s Gini coefficient (a measure of income disparity, with zero corresponding to complete equity and 100 to extreme inequity) was 41.7 for 2019, according to Eurostat. It is an improvement from a Gini coefficient score of 43.3 in 2011.
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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