The Power of Parity: How Advancing Women’s Equality Can Add $12 Trillion to Global Growth
This report explores the economic potential available if the global gender gap were to be closed. The research finds that, in a full-potential scenario in which women play an identical role in labor markets as men, as much as USD 28 trillion, or 26%, could be added to global annual gross domestic product (GDP) in 2025. This estimate is double that of other studies' estimations, reflecting the fact that the McKinsey Global Institute (MGI) has taken a more comprehensive view of gender inequality in work.
To help policymakers, business leaders, and other stakeholders prioritize action in a global effort to close the gender gap, this study has also identified ten impact zones of gender inequality. Across the impact zones, this report offers a six-part framework of types of intervention that are most likely to deliver change. It discusses some of the factors that have made gender initiatives around the world successful, as well as the private sector’s opportunity to take the lead in defining initiatives.
The analysis uses a holistic framework of 15 outcome-based indicators to assess global gender equality, one of which is financial inclusion. These indicators are mapped for 95 countries that are home to 93% of the world’s female population and generate 97% of global GDP. It finds that 40 of the 95 countries have extremely high or high levels of inequality on half or more of the 15 indicators.
