Global Wealth Increase and Distribution in 2023

Global Wealth Growth in 2023

In 2023, the world saw a 4.2% increase in global wealth, spurred by a rebound in global stock markets and a reduction in inflation. The regions that experienced the most significant wealth growth were Europe, the Middle East, and Africa. However, the U.S. only saw an annual growth rate of about 2.5%, which is approximately half of the rate of these regions. The average wealth in 2023, from a regional perspective, was as follows: - Europe, the Middle East, and Africa: $166,000 per adult - Asia Pacific: $156,000 per adult - Americas: $146,000 per adult

Top 10 Countries by Average and Median Wealth

A graphic by Visual Capitalist's Kayla Zhu, based on data from UBS, reveals the top 10 countries by average and median wealth. Average wealth is calculated by dividing a country’s total wealth by its adult population. However, these figures can be skewed by extremely high or low values, such as the wealth held by billionaires.

Countries with the Highest Average Wealth per Person

The countries with the highest average wealth per person in 2023, across a dataset of 56 countries that covers approximately 92.2% of the global population, are as follows: Switzerland tops the list, with the average wealth per adult increasing from $685,226 in 2022 to $709,612 in 2023. Many of the wealthiest nations are small countries with thriving financial sectors, like Luxembourg and Singapore. These countries benefit from substantial foreign direct investment and pro-business policies, which help boost economic wealth. In Singapore, for instance, capital gains and dividend income are tax-free.

Countries with the Highest Median Wealth per Person

A more representative measure of wealth distribution, median wealth, tells a different story. Median wealth is the value that splits a population’s total wealth in half, with half of the population having more and half having less. It represents the “middle of the pack.” The table below shows that median wealth per adult is much lower than average figures across many countries, highlighting wealth gaps across populations. In Switzerland, it is four times smaller, while median wealth is nearly five times lower in the United States. By this measure, Luxembourg sits at the top, a country with the highest density of millionaires in the world. Roughly 16% of the population are millionaires, compared to the 1.5% average across the 56 countries analyzed. Additionally, there are no billionaires in Luxembourg, which has a population of just 653,000 people. Furthermore, Australia and Belgium rise up the ranks, with Belgium seeing a particularly small gap between average and median wealth. This is partly due to high real estate ownership in Belgium, where 10% of the population own more than one home.

Bottom Line

The distribution of wealth across the globe is a complex topic, with many factors contributing to the disparities seen between countries and within populations. The data presented here provides a snapshot of the state of global wealth in 2023, highlighting the countries with the highest average and median wealth per person. It also brings to light the wealth gaps that exist within countries. What are your thoughts on this matter? Do you find these statistics surprising or expected? Share this article with your friends and spark a conversation about global wealth distribution. Remember, you can sign up for the Daily Briefing, which is delivered every day at 6pm.