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In development economics, the middle income trap is a situation where a country has developed until GDP per capita has reached a middle level of income, but the country does not develop further and it does not attain high income country status. [1]
4 wrz 2024 · In 2007, a World Bank report coined the concept of the “middle-income trap.” At the time, the term was used to describe countries mostly in Latin America and the Middle East who, despite economic growth and falling poverty rates, were never able to become high-income countries.
This paper provides a working definition of what the middle-income trap is. It classifies 124 countries that have consistent data for 1950–2010. First, the paper defines four income groups of gross domestic product per capita in 1990 purchasing power parity dollars: low-income below $2,000; lower middle-income between $2,000 and $7,250; upper ...
30 lis 2016 · The term middle-income trap (MIT) usually refers to countries that have experienced rapid growth and thus quickly reached middle-income status, but then failed to overcome that income range to further catch up to the developed countries.
• Middle-income countries are prone to systematic growth slowdowns—a concept termed the “middle-income trap.” The median growth slowdown episode occurs when a country reaches about 11 percent of the gross domestic product per capita of the United States. • Although income per capita is the metric most commonly used to measure the pace of
What is the middle-income trap? Since the 1970s, income per capita in the median middle-income country has stayed below one-tenth of the US level. Rising geopolitical, demographic, and environmental challenges will make it harder to achieve faster economic growth in the years ahead.
The “middle-income trap” is the phenomenon of hitherto rapidly growing economies stagnating at middle-income levels and failing to graduate into the ranks of high-income countries.
