As the number of dollar millionaires in Turkey rises rapidly, wealth inequality deepens

The 2024 Global Wealth Report published by the Swiss-based financial institution UBS has revealed that Turkey is drawing attention with the rise in its number of dollar millionaires. According to the report, the number of people in Turkey who are dollar millionaires increased by approximately 7 thousand, reaching nearly 68 thousand, making it the country with the fastest growth in this area globally. Turkey was followed by the United Arab Emirates with a 5.8 percent increase, and then Russia.

Worldwide, 684 thousand more people reached dollar millionaire status in 2024. Thus, the total number of dollar millionaires continues to rise with a momentum that is expected to increase by five million more by 2029. While the US leads the list with approximately 24 million dollar millionaires, China follows with 6.3 million, and France ranks high with approximately 3 million dollar millionaires.

INEQUALITY HAS INCREASED

Despite the increase in the number of dollar millionaires in Turkey, the real value of wealth in the country has declined. Although wealth per capita showed an increase of over 35 percent, when adjusted for inflation, this rate points to a 14.6 percent decrease. The decline in median wealth approached 21 percent. This situation has led to income inequality becoming even more pronounced.

In the Gini coefficient, which measures income inequality, Turkey ranked ninth among 56 countries. At the top of the list are Brazil, Russia, and South Africa. While the share of financial assets in total gross wealth in Turkey remains low at 30 percent, non-financial assets such as real estate stand out. The relatively low debt ratio in the country partially contributes to the preservation of wealth.

The decline in wealth growth in real terms due to the impact of inflation is further increasing income inequality in Turkey, while significant changes are also occurring in the structure of wealth. Experts point out that this picture may continue in the coming years.

News Source: 12punto