The Global Consumption Database recently released by the World Bank Group (WBG) suggests that the total annual spending of approximately 4.5 billion people with low incomes in the developing world exceeded USD 5 trillion in 2010, more than the combined spending of the middle- and high-income groups in the same 92 developing countries. The database also indicates that the low-income segment of the developing world spent USD 2.3 trillion on food and beverages during 2010, which was significantly more than the USD 1.4 trillion that the middle- and high-income segments spent on food and beverages. Similar trends can be observed in the energy sector. In the clothing and footwear, housing, education, health and water sectors, the low-income segment spent approximately as much as the middle- and high-income segments combined. In the transport, financial services, and information and communication technology sectors, the spending of the middle- and high-income segments exceeded that of the lower income segment.
The Global Consumption Database also analyzed market sizes and consumption patterns, which reveal market demand in various sectors and across different consumer segments. The results suggest that there are “large untapped business opportunities in developing countries”[1].
The Global Consumption Database was created from surveys that were completed by approximately 1 million households in rural and urban areas of 92 developing countries. WBG had commitments of USD 52.6 billion in loans, grants, equity investments and guarantees as of December 2013.
By Alíz Crowley, Research Associate
About The World Bank Group (WBG)
The World Bank Group (WBG) is a US-based development bank that consists of five institutions, all of which are owned by its member countries. The Group’s mission is to improve living standards for people in the developing world. The World Bank Group encompasses the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); the International Centre for Settlement of Investment Disputes (ICSID) and the World Bank, which consists of the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). WBG has 10,000 employees and operations in approximately 120 countries as of 2014. WBG had commitments of USD 52.6 billion in loans, grants, equity investments and guarantees as of December 2013.
[1] The World Bank Group, Global Consumption Database
MicroCapital, August 28, 2013, World Bank Group, National Housing Bank, Government of India Sign $100m Agreement for Low-Income Housing Finance Project
MicroCapital, August 4, 2013, World Bank Group (WBG) Announces “Financial Infrastructure Development Project” in Yemen; International Development Association (IDA) Provides Grant of $20m
MicroCapital, May 28, 2012, World Bank Group’s “Measuring Financial Inclusion: The Global Findex Database” Indicates 2.5 Billion Do Not Have Access to Formal Banking
MicroCapital Universe Profile: The World Bank Group
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