The world is a much more dangerous place than it was a decade ago, says a new report.
The Economist Intelligence Unit, which has been tracking economic developments in developing countries, says the world’s economic prospects have deteriorated in recent years.
The world economy is now more vulnerable than ever, with a global population that is set to double from 8.1 billion to 11.6 billion by 2050.
The global financial crisis of 2008 and subsequent austerity measures have driven the world economy into recession, according to the study.
“As we look ahead, it is clear that a much bigger proportion of the world population is living in poverty,” said Mark Zandi, the chief economist of Moody’s Analytics.
In many countries, the poor have become the majority, with half of the population living in extreme poverty, or below $1.25 a day.
In the UK, where the poverty rate is more than double the global average, the figure is 16%.
In the US, the situation is much more complex, with the poverty level being much higher, at 30%.
In the European Union, the poverty rates are more similar, at 28%.
“The number of people living in absolute poverty is increasing faster than the number of millionaires,” Zandi said.
This is because the number who are rich has doubled, to more than 2.3 billion.
These people are able to buy a house, buy cars, invest in the stock market and have their own personal brand of luxury goods and services.
“In fact, the number and distribution of millionaires has gone through the roof, and they have become a big part of the economic landscape,” he said.
While some rich people are now in the top 1 per cent of the global population, others are in the bottom fifth.
A new study released by the International Monetary Fund (IMF) this week warns that a rising number of middle class households are being forced into poverty.
The IMF’s Economic Outlook 2018 estimates that in 2025, the proportion of middle-class people in developed countries will be nearly 20 per cent, compared to less than 10 per cent in the developing world.
The proportion of people in poverty will also increase.
More than two-thirds of the poorest countries will face economic contraction in 2025.
“The growing economic and social inequality that is driving the economic crisis is deepening the political and social divide,” said the report.
“It is now clear that, even if governments tackle inequality and poverty, the benefits of economic growth will not be evenly distributed to everyone, and that this may well be a problem for a large proportion of low- and middle-income people.”
The IMF estimates that the poorest 10 per’th of households in the world are set to become poorer by 2030.
It said the trend was set to worsen as the developing economies become richer.
“A number of emerging economies are now facing a worsening of the income distribution.
In some, the share of poor households has increased by more than 30 per’the other developing countries,” the report said.
It also warned that the global economic crisis has had a severe impact on the lives of people who have been left behind, with many of the most vulnerable among the poorest.
“Many of the people living under extreme poverty in developing nations are people with very limited or no education, and those who are vulnerable to social exclusion,” it said.
“Even in the poorest developing countries in the Middle East and South Asia, poverty remains endemic, with poverty rates of more than 20 per’this in some regions.”