COVID-19 and Global Income Inequality

There is a widespread belief that the COVID-19 pandemic has increased global income inequality, reducing per capita incomes by more in poor countries than in rich. This supposition is reasonable but false. Rich countries have experienced more deaths per head than have poor countries — their better health systems, higher incomes, more capable governments and better preparedness notwithstanding. Country by country, international income inequality decreased. When countries are weighted by population, international income inequality increased, not because the poorest countries diverged from the richest countries, but because China — no longer a poor country — had few deaths and positive economic growth, pulling it away from poor countries.