Inequality and Economic Performance: Reviewing Global Trends and Evidence

Abstract

This study investigates the relationship between inequality and economic performance through a systematic review of global literature from last five years. The findings show that high levels of income and wealth inequality negatively impact long-term growth by limiting access to education, weakening consumption, and increasing political instability. The analysis highlights that the effects of inequality are shaped by institutional and policy environments countries with strong redistributive systems are more resilient to its adverse effects. The COVID-19 pandemic has further exposed and intensified structural disparities, especially in low-income populations. The study concludes that reducing inequality is not only a matter of social justice but also essential for achieving sustainable and inclusive economic development.