Canada: Gini index

Key figures

What the numbers say

In 2022, Canada's gini index rose 0.4 on 2021 (from 31.1 to 31.5).

Across the 30 yearly changes before that (1992 to 2021), the average change was −0.03 and a typical year strayed about 0.66 from that (the standard deviation). This year's change was 0.6 standard deviations above that average, so it was an ordinary year: it sits within the range of normal year-to-year movement.

On record, the biggest yearly rise was 1.3 in 1996 and the biggest yearly fall was 1.9 in 2020. The numbers show how large and when, not why; for the cause, look at what happened in that country in those years.

From 2013 to 2022 the straight-line trend is downward, about 0.35 a year. A straight line explains 71% of the movement over 10 observed years.

Worked out from the yearly values above. How the checks work: standard deviation, z-scores and straight-line trends.

Closest to Canada in the 2022 ranking

• Viet Nam — 4th of 9: 36.1
• China — 5th of 9: 36
• Germany — 6th of 9: 33.7
• Mongolia — 8th of 9: 31.4
• Bangladesh — 9th of 9: 30.9

What this measures

Gini index measures the extent to which the distribution of income (or, in some cases, consumption expenditure) among individuals or households within an economy deviates from a perfectly equal distribution. A Lorenz curve plots the cumulative percentages of total income received against the cumulative number of recipients, starting with the poorest individual or household. The Gini index measures the area between the Lorenz curve and a hypothetical line of absolute equality, expressed as a percentage of the maximum area under the line. Thus a Gini index of 0 represents perfect equality, while an index of 100 implies perfect inequality.

Limitations: Gini coefficients are not unique. It is possible for two different Lorenz curves to give rise to the same Gini coefficient. Furthermore it is possible for the Gini coefficient of a developing country to rise (due to increasing inequality of income) while the number of people in absolute poverty decreases. This is because the Gini coefficient measures relative, not absolute, wealth. Another limitation of the Gini coefficient is that it is not additive across groups, i.e. the total Gini of a society is not equal to the sum of the Gini's for its sub-groups.

All 46 values

Gini index in nearby economies

• United States — 41.8 (2024)

More poverty data for Canada

• Income share held by second 20% — 13% (2022)
• Income share held by third 20% — 17.2% (2022)
• Income share held by fourth 20% — 22.6% (2022)
• Income share held by highest 20% — 39.5% (2022)
• Income share held by highest 10% — 24.6% (2022)
• Proportion of people living below 50 percent of median income (%) — 10.9% (2022)
• Income share held by lowest 10% — 2.9% (2022)
• Income share held by lowest 20% — 7.7% (2022)
• Poverty headcount ratio at $3.00 a day (2021 PPP) (% of population) — 0.3% (2022)
• Poverty gap at $3.00 a day (2021 PPP) (%)

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Questions people ask

What is Canada's gini index?

31.5 in 2022, according to the World Bank (World Development Indicators).

How has it changed since 1971?

It is down 15.32% from 37.2 in 1971 (0.33% a year on average, compounded). The highest value was 37.2 in 1971 and the lowest 29.9 in 2020.

Is the latest change in gini index unusual for Canada?

In 2022, Canada's gini index rose 0.4 on 2021 (from 31.1 to 31.5). Across the 30 yearly changes before that (1992 to 2021), the average change was −0.03 and a typical year strayed about 0.66 from that (the standard deviation). This year's change was 0.6 standard deviations above that average, so it was an ordinary year: it sits within the range of normal year-to-year movement.

Where does this data come from?

The World Bank's World Development Indicators, licensed CC BY 4.0. Original source: World Bank, Poverty and Inequality Platform. Data are based on primary household survey data obtained from government statistical agencies and World Bank country departments. Data for high-income economies are mostly from the Luxembourg Income Study database..

Source

World Bank, World Development Indicators, indicator SI.POV.GINI, licensed CC BY 4.0. Original source: World Bank, Poverty and Inequality Platform. Data are based on primary household survey data obtained from government statistical agencies and World Bank country departments. Data for high-income economies are mostly from the Luxembourg Income Study database. Figures are fetched from the World Bank API and refreshed monthly; see the series on data.worldbank.org. The full definition and method are in the World Bank's metadata glossary. Comparisons use the same World Bank release.

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