Allianz report: Turkey ranks 46th in the world in wealth per capita, middle class is shrinking

According to the Global Wealth Report by German insurance giant Allianz, Turkey ranks 46th in the world when based on wealth per capita. The shrinkage of the middle class in Turkey is noteworthy. According to the Global Wealth Report published by Allianz, one of the world's largest insurance companies, the wealth held by private households worldwide increased by 7.6 percent in 2023 compared to the previous year, rising to 239 trillion euros.

68 PERCENT INCREASE IN PRIVATE HOUSEHOLD WEALTH

According to the report cited by DW Turkish, wealth growth is expected to continue at a rate of 6.5 percent in 2024 due to the rise in stock prices on stock exchanges last year. The middle class is eroding in Turkey. Allianz's report reveals that private household wealth in Turkey experienced a 68.7 percent increase last year, with this wealth rising to a total of 381 billion euros.

'MIDDLE CLASS IS SHRINKING'

However, along with Colombia, which has 64.6 percent inflation, Turkey is also considered a hyperinflation country with 68 percent inflation according to official figures. This shows that the wealth increase experienced is not significant when adjusted for inflation. Another striking point of the report is that Turkey is listed among the countries where the "middle class is shrinking," alongside 15 other countries including Brazil, India, Russia, Indonesia, and the USA.

AVERAGE OF 3 THOUSAND 240 EUROS PER CAPITA

In the ranking of the world's wealthiest countries based on wealth held by private households, Turkey ranks 46th with an average of 3 thousand 240 euros in financial assets per capita. Total wealth in Germany is approximately 8 trillion euros. According to the report, the wealth of private households in Germany increased by 6.8 percent last year to 7 trillion 953 billion euros. This shows that wealth growth in Germany was above the Western European average, which increased by 5 percent in the same period.

However, according to Allianz's assessment, when the loss due to inflation is removed, the real wealth growth in Germany is only 0.7 percent. According to data in the report, the purchasing power of those living in Germany has also fallen by 1.7 percent compared to 2019, the last year before the coronavirus pandemic. According to the report, which states that savers in the country have left "four lost years" behind, Germany ranks 18th in the list of the world's 20 wealthiest countries with an average net financial wealth of 69 thousand 60 euros per capita.