GAF Academy

Growth of the Middle Class: Meeting the Challenges

Since the end of World War II, G7 economies accounted for the majority of the global GDP, even though this period witnessed major economic events such as the end of Bretton Woods international agreements, oil price shocks and various exchange rate crises (Kharas, 2010). Among other reasons, this remarkable performance is also the result of such countries having large middle classes. Despite lacking a comprehensive definition, the middle class can be understood in terms of the ability of living a comfortable life, in terms of housing, education, support in adversities of life and ability to pursue its goals in life. This last point is one of the reasons why middle classes are considered one of the major sources of innovation and entrepreneurship.

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