- By Ridam Sharma
- Tue, 08 Jul 2025 02:28 PM (IST)
- Source:JND
Countries With Best Gini Index: Income inequality is an important measure of a country's economic and social well-being. The Gini Index also called the Gini coefficient, is used to measure income inequality across the nation. The Gini Index was developed by Italian statistician Corrado Gini in 1912. The Gini Index measures how evenly income or wealth is distributed in a country among its population. It is also important to note that a reading of 0 indicates complete equality, which means all citizens have the same level of income, while a 100 Gini Index indicates complete inequality, which means one individual possesses all the income. To know more, here’s a list of the top 10 countries with the best Gini Index, according to the official data by the World Bank and CIA (Central Intelligence Agency).
What Is the Gini Index?
The Gini Index is a measure of income equality in the country. In more detailed words, it calculates the income or consumption among households or individuals in a country that is distributed from a perfectly level distribution. It is determined through the Lorenz curve, which graphically represents the cumulative percentage of income received by the poorer x% of the population. The larger the area between the line of perfect equality and the Lorenz curve, the larger the Gini Index. Therefore, a lower Gini Index is an indication of a more equal society.
List Of Top 10 Countries With The Best Gini Index:
| Country | Gini Coefficient (World Bank) (%) | Data Year (World Bank) | Gini Coefficient (CIA) (%) | Data Year (CIA) |
|---|---|---|---|---|
| Slovakia | 24.1 | 2021 | 24.1 | 2021 |
| Slovenia | 24.3 | 2021 | 24.3 | 2021 |
| Belarus | 24.4 | 2020 | 24.4 | 2020 |
| Ukraine | 25.6 | 2020 | 25.6 | 2020 |
| Netherlands | 25.7 | 2021 | 25.7 | 2021 |
| Moldova | 25.7 | 2021 | 25.7 | 2021 |
| Iceland | 26.1 | 2017 | 26.1 | 2017 |
| Czech Republic | 26.2 | 2021 | 26.2 | 2021 |
| United Arab Emirates | 26.4 | 2018 | 26.0 | 2018 |
| Kyrgyzstan | 26.4 | 2022 | 28.8 | 2021 |
Detailed View On The Top 10 Countries With The Best Gini Index:
1. Slovak Republic
Slovakia is the top country with the best Gini Index of 24.1. The extremely equal income distribution here is due to strong social policies, a progressive tax system, and efficient redistribution measures.
2. Slovenia
Slovenia has the second-best Gini Index in the world, which is 24.3. All thanks to the country’s well-functioning welfare state, universal education and healthcare that keep inequality significantly low.
3. Belarus
Belarus's low Gini Index of 24.4 is likely owed to its economic heritage, in which state control of wages and employment reduces income inequality.
4. Ukraine
Ukraine's 25.6 Gini Index score is a response to improved social inequality, although future trends could be impacted by continuing conflict and economic pressures.
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5. Netherlands
The Netherlands, with a Gini Index of 25.7, has a market economy but a strong social safety net, progressive taxation, and widespread public services.
6. Moldova
Moldova's 25.7 score on the Gini Index is impressive for a lower-middle-income country. Social transfers and remittances from abroad contribute to mitigating inequality.
7. Iceland
Iceland’s lower income inequality index score is around 26.1, and all credit goes to the nation’s developing welfare system, strong social safety nets, and improved overall policies. All of which primarily focus on the country’s significant growth.
8. Czech Republic
Czechia's low inequality of 26.2 as per 2021 statistics, showcases its universal growth in healthcare, free education, and social policies.
9. United Arab Emirates
The United Arab Emirates’s Gini Index of 26.4 is one of the lowest in the Middle East. All share of credit likely goes to the country's oil wealth and government subsidies.
10. Kyrgyzstan
Kyrgyzstan concludes the list of the top 10 countries with the best Gini Index. Kyrgyzstan’s 26.4 Gini coefficient is the result of its market-oriented economy, focus on reforms and significant social safety nets.
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Know Where India Stands on the Gini Index Report?
India's income inequality, as measured by the Gini Index, has improved in the last decade. India's consumption-based Gini Index, according to recent statistics, came down from 28.8 in 2011–12 to 25.5 in 2022–23, which would mean a more even distribution of income or consumption within its population. However, this rate primarily tells us about consumption trends and does not necessarily account for income inequality. India now ranks 176th position, among 216 nations in income inequality, which highlights the urgent need for efforts that majorly focus on economic disparities within the nation of billions.
The list of top 10 countries with the best Gini Index in the world showcases that low-income inequality is possible through a mix of good social policies, fair taxation, and distributional economic growth. Though the Gini Index is a useful measure for cross-national comparison of inequality, it must be understood that it does not reflect all dimensions of social or economic inequalities, like access to services, regional divides, or wealth concentration. Nevertheless, these countries are an inspiration for other countries that would want to construct more equitable, fair societies.