Press Trust of India (PTI) has reported that according to the IMF (International Monetary Fund) financial inequality is one of the highest in two of the world's fastest growing economies. China and India have topped the list of countries with highest financial inequality in the Asia-Pacific region according to a report by the IMF.
PTI reports that According to an IMF report China and India have grown at a very fast pace and have been able to markedly reduce poverty but while the economies have performed impressively they have also witnessed rising levels of inequality.
This report states that "Asia has been the growth leader in the world and has achieved remarkable high growth for sustained periods. From 1990-2015 the region grew at around 6% per annum, notwithstanding the sharp slow downs during the Asian Financial crisis and the Global Financial crisis. At the same time, during this period, large gains were achieved in poverty alleviation. The poverty rate has fallen from 55% in 1990 to 21% in 2010 in large part by China and India. However this impressive economic performance has been accompanied by rising inequality in a number of Asian economies".
According to this report "In China the Gini coefficient rose the most from 33 in 1990 to 53 in 2013. From being one of the most equitable economies in 1990, inequality in China is now higher than most other regions. There is also a large difference between urban and rural areas within China with inequality in urban areas rising more sharply".
The report also mentions that Income inequality as measured by the Gini coefficient has also risen in India where in 1990 India's net Gini was around 45 but which had increased to 51 by 2013. The report suggests that even in India as in China the rise in inequality has been more sharp in Urban areas.
The Gini coefficient is used to measure income inequality through statistical methods.
To know more click on the IMF report below