Turkey in the Global Wealth Report: The country with the highest increase in millionaires and the deepest inequality

Switzerland-based UBS Group AG, considered one of the world's largest asset managers, released its 2024 "Global Wealth Report" which sheds light on one of the most striking contradictions of the Turkish economy: While there is a record increase in the number of millionaires, broad segments of society are becoming poorer in real terms. According to the report, the number of new dollar millionaires is rising, and more than five million people are expected to join the millionaire class by 2029. The number of millionaires worldwide increased by 1.2% (684,000 people). In percentage terms, the highest increase occurred in Turkey, exceeding the 8% threshold, while the United Arab Emirates ranked second with a 5.8% expansion.

According to the report, nearly 2,000 new dollar millionaires emerged globally every day in 2024. In the report, which examined 56 countries, Turkey became the country with the highest increase in the number of dollar millionaires, while also being the country where wealth in local currency terms decreased the most. The US ranked first in the world with nearly 24 million dollar millionaires. China followed in second place with 6.3 million, and France ranked third with approximately 3 million dollar millionaires.

According to the report, wealth per capita in Turkey increased by more than 35% last year. However, when viewed in real terms—that is, adjusted for inflation—wealth per capita was seen to have declined by 14.6%. While the global growth rate for the number of millionaires averaged 1.2%, it was notable that the rate in Turkey was 8.4%. Last year, the number of dollar millionaires increased by 7,000, approaching 68,000. Conversely, the report pointed out that median wealth in Turkey fell by nearly 21% last year and that inequality in wealth and income distribution has increased.

The world is entering a period where wealth creation is both accelerating and concentrating. While the UBS report maps these global changes, it reveals that Turkey possesses a wealth structure that is unique yet intertwined with systemic problems. At first glance, the indicators in the report may appear “bright,” but when delving into the details of the figures, it is possible to see the shadow of a serious structural collapse behind this luster.

MILLIONAIRE EXPLOSION: REALITY OR ILLUSION?

According to UBS data, the number of dollar millionaires worldwide is expected to increase by approximately 9% by 2029 compared to 2024, with more than 5 million additional people joining this class.

In 2024, the country with the highest number of new additions to the millionaire ranks was Turkey, with an 8.4% increase and approximately 7,000 new additions, bringing the total to about 70,000 dollar millionaires. Turkey was followed by the United Arab Emirates with a 5.8% increase. Globally, approximately 700,000 people reached dollar millionaire status compared to the previous year, a 1.2% increase, joining this privileged club.

The USAis home to the majority of dollar millionaires; in 2024, this number exceeded one thousand per day. Continuing the trend observed in the Global Wealth Report, it has more dollar millionaires than the United States, Western Europe, and China combined. 

The highest density of dollar millionaires per capita is found in Switzerland and Luxembourg. In 2023, this rate was slightly higher in Luxembourg than in Switzerland; in 2024, Switzerland surpassed Luxembourg, but the overall picture remained unchanged.

In terms of absolute growth, the millionaire population increased the most in the U.S. in 2024, with an average of one thousand people joining this club daily. In mainland China, the daily increase exceeded 380 people. Eastern Europe experienced the highest regional wealth growth at over 12% in 2024, closely followed by the United States.

While China and Southeast Asia experienced moderate growth, Western Europe, Oceania, and Latin America saw a decline in wealth compared to 2023. While Switzerland and the U.S. lead in average wealth per adult, Hong Kong and Luxembourg are also among the leading regions. In terms of median wealth, Luxembourg ranks first, followed by Australia and Belgium. Over the next five years, North America and Greater China are expected to be the main drivers of the global economy and lead wealth growth.

Although some of the data I mentioned above seem to indicate that economic dynamism and wealth accumulation are accelerating, this increase can be explained more by currency depreciation, asset inflation, and the ease of crossing foreign currency-based wealth thresholds than by income growth.

For example, the value of a property in Istanbul that could be purchased for 5 million TL 3-4 years ago has risen to 25-30 million TL today. Due to the depreciation of the TL, these assets are crossing the "millionaire threshold" in dollar terms. This situation inflates statistics regarding millionaires; however, the real prosperity of these individuals is not increasing at the same rate. In fact, most of them consist of individuals who still avoid income tax and are not included in the financial system.

WEALTH IS GROWING BUT PURCHASING POWER IS DECLINING

One of the most striking contradictions in the report is the gap between the increase in wealth per capita in Turkey and real life. In 2024, wealth per capita in local currency appears to have increased nominally by over 35%. However, when inflation is added to this increase, real wealth has decreased by 14.6%. Furthermore, the decline in median wealth, also measured in local currency, is 21%. finds. With these rates, Turkey lags behind even countries like India, China, and Russia.

This situation shows that the wealth increase in Turkey is not shared with broad segments of society; on the contrary, income and wealth inequality are increasing dramatically. Even if there is economic growth, the only segment benefiting from this growth is a very small group.

TURKEY IS AMONG THE COUNTRIES WITH THE MOST UNEQUAL WEALTH DISTRIBUTION

In the Gini coefficient, which measures income inequality, Brazil was the worst-performing country, followed by Russia and South Africa. Turkey ranked 9th on the list. Calculated by UBS, the Gini coefficient is one of the clearest indicators of injustice in wealth distribution. In this indicator, Turkey in 9th place and has a high value of 0.73. With this ratio, it is among the top 10 countries in the world where wealth is most unequally distributed. It is mentioned alongside Brazil (0.82), Russia (0.82), and South Africa (0.81). Among developed countries, Germany's Gini coefficient is 0.68, while Japan's is 0.54. In countries with high wealth but relatively balanced distribution, such as Switzerland, this ratio is around 0.67. Slovenia and Belgium stand out as the two countries where wealth is distributed most fairly.

This high degree of inequality is a source not only of economic problems but also of political and social issues. This is because extreme inequality creates economic insecurity, political anger, and social polarization among a large segment of society.

STRUCTURAL PROBLEMS: WHY HAS TURKEY FALLEN BEHIND?

The UBS 2024 Global Wealth Report reveals that Turkey is the country with the fastest growth in the number of millionaires in dollar terms. However, when this apparent growth is evaluated alongside real wealth losses, high inflation, and deepening income inequality, it does not go beyond a superficial trend of enrichment. The data in the report shows that Turkey's wealth accumulation process has an unbalanced and fragile structure that is far from financial inclusion.

Behind Turkey's remaining at low wealth levels lie not temporary, but deep structural problems. When the data from the UBS report and other economic indicators are evaluated together, these problems become clearly evident.

In Turkey, only 33% of individual wealth consists of financial assets. The remainder is largely held in illiquid real estate, such as housing and land, which does not easily generate income. However, this ratio is over 70% in the US, approximately 70% in Switzerland, and nearly 80% in Sweden. In other words, citizens in Turkey largely hold their wealth in real estate rather than financial instruments. This situation makes the sustainability, diversification, and protection of wealth against crises more difficult.

The high inflation experienced over the last five years has eroded the real value of savings and shaken confidence in financial markets. The decline in trust in the Turkish Lira increases demand for foreign currency and exchange rate volatility, making long-term wealth accumulation difficult.

Low real wages, precarious working conditions, and irregular income make saving almost impossible, especially for young people. This situation leads to the weakening of the middle class and the concentration of wealth within a narrow group.

In Turkey, wealth taxes are either non-existent or have a very limited impact. Approximately 70% of total tax revenue is generated from indirect taxes (VAT, SCT, etc.). In developed countries, however, direct income and wealth taxes form the foundation of the tax system, thereby balancing income distribution while placing public revenues on a more solid footing.

WHAT CAN WE LEARN FROM OTHER COUNTRIES?

In Switzerland, the average wealth is $687,166, while the median wealth stands at $182,248. In the country, wealth is spread not only among the rich but also across a broad middle class. This is made possible by the tax system, the transparency of financial products, and low inflation.

In South Korea, average wealth has increased by 44 percent over the last five years. The country is enriching its new generation middle class through technology exports, high levels of education, and social welfare systems.

In the United States, median wealth has risen by 45 percent over the last five years. This increase indicates that broad segments of the population are able to accumulate wealth and that the entrepreneurial ecosystem is functioning. Moreover, social mobility still persists in the country.

CONCLUSION: WHAT SHOULD BE DONE? THE PATH TO TRUE PROSPERITY

The UBS 2024 Global Wealth Report reveals that the number of dollar millionaires in Turkey has increased at seven times the global average. However, this striking increase is less a sign of genuine enrichment and more a reflection of rising inequality, eroding purchasing power, and unbalanced economic growth. While the number of millionaires grows, broad segments of society are becoming poorer in real terms; only a privileged minority is benefiting from the returns of growth.

The data in the report not only diagnoses the situation but also highlights the necessity for Turkey to transition toward a fairer and more sustainable wealth structure. In this direction, the first step that must be taken is to launch a nationwide financial literacy mobilization. Public education campaigns should be implemented so that individuals can attain the investment awareness needed to protect themselves against inflation; a culture of saving and investment must be spread across all segments of society. This will increase economic decision-making capacity and ensure that prosperity is distributed to the base. Wealth tax and transparency reforms

are also critical components of this transformation. Individuals with very high wealth should be taxed at fair rates, unregistered assets should be brought into the system, and inheritance taxes should be redesigned not only to regulate intergenerational transfers but also to strengthen tax justice. This is a crucial step for a more equitable economic future. Only through such structural changes can the gap between the wealthy and the rest of society be narrowed.

These steps will only gain meaning through a determined and transparent fight against inflation. Unless a predictable and independent monetary policy that protects the purchasing power of the Turkish Lira is adopted, long-term wealth accumulation for individuals is not possible. The independence of the Central Bank, data transparency, and fiscal discipline are the cornerstones of restoring trust.

Furthermore, investments must be directed away from speculative areas like real estate and toward productive sectors such as industry, agriculture, technology, and R&D. True wealth accumulation is possible not only through increases in asset prices but through production, innovation, and value-added activities. Support provided to these areas will strengthen both entrepreneurship and the middle class.

Access to the system for young people must be treated as an urgent priority. Unless structural barriers facing youth regarding housing, quality employment, entrepreneurship, and access to finance are removed, wealth will remain concentrated only in certain age and income groups. Turkey's future will be shaped by the inclusion of productive individuals into the system.

Although Turkey stands out in the UBS report as one of the countries with the "fastest growth in millionaires," behind this headlinelies the impoverishment of broad segments of society alongside the rise of a wealthy minority. The increase in the number of millionaires is less about economic success and more explained by high inflation, the depreciation of the Turkish Lira, and currency shocks. This picture clearly demonstrates that the economic structure is fragile, unjust, and unsustainable.

True wealth is not just about the growth of figures, but about the distribution of this wealth across the entire society, the provision of equal opportunities, and the establishment of lasting social welfare. measured. Otherwise, Turkey will continue to be one of the countries where the gap between the “wealthy minority and the impoverished majority” grows the fastest.

UBS data reveals that behind the superficial image of wealth in Turkey lies a deep problem of impoverishment and inequality. The increase in the number of millionaires is not a success story for the country's economy; it is a natural consequence of inflation and currency shocks. For genuine prosperity, the welfare level of broad segments of society must increase, they must be included in the financial system, wealth must be distributed fairly, and an economy based on production must be built. Otherwise, Turkey will continue to be known as a “country that is becoming a nation of millionaires while simultaneously becoming impoverished.” True wealth can only be built on equality.

In Conclusion: UBS data clearly demonstrates that behind the apparent wealth in Turkey lies a deep problem of impoverishment and increasingly severe inequality. The increase in the number of millionaires is not a result of structural reforms, but rather a consequence of economic instability and financial distortions. This is the reality.

True prosperity growth is possible through raising the living standards of the entire society, the inclusion of individuals in the financial system, and an economic model based on production. Turkey's future will be shaped by building a prosperity order in which everyone receives a share, not just a select few.

True wealth lies not only in the size of the fortune, but in how it is shared and with whom.