Global Wealth Inequality Changes Since 2008

Understanding the Gini Index

Visual Capitalist's Marcus Lu presents a graphic that traces the shifts in wealth inequality in various nations from 2008 to 2023. The data is derived from the UBS Global Wealth Report 2024. The Gini index, which measures wealth inequality within a population, is used as the metric for these changes. This index ranges from 0% (representing perfect equality) to 100% (indicating maximum inequality). Higher values on the Gini index point towards a greater disparity in the distribution of wealth. For instance, a nation where a single individual owns all the assets while the rest of the population owns nothing would have a Gini index of 100%.

Ranked: Changes in Wealth Disparity by Country (2008–2023)

According to UBS' selection of countries, Singapore has experienced the most significant increase in its Gini index, rising from 53% in 2008 to 70% in 2023. The government has implemented policies aimed at attracting high-net-worth individuals and international investment capital to the country. Conversely, measures to decrease inequality have been approached from an economic perspective, such as efforts to eliminate structural barriers that hinder individuals from maximizing their productivity. Intriguingly, Singapore's average wealth increased by 116% during the same period, while its median wealth decreased by 2%.

Finland and Spain, along with Singapore, are the three countries that have seen a 20 percentage point increase in their Gini index values since 2008. Out of the 29 countries analyzed by UBS, 18 have seen rising wealth inequality.

Wealth Disparity Reduction in Some Countries

Despite the overall trend of increasing wealth inequality, some countries, including large economies like the U.S. (-1%), Germany (-6%), and Saudi Arabia (-13%), have seen a decrease in wealth disparity. A recent analysis by the Federal Reserve found that from 2019 to 2022, low-wealth groups in America experienced larger percentage gains in wealth compared to their high-wealth counterparts.

Visualizing Wealth Inequality by Country (2024)

For a comparison of wealth disparity in the world's largest economies, refer to Visualizing Wealth Inequality by Country (2024).

Bottom Line

It's clear that wealth inequality is a complex issue that varies greatly from one country to another. While some nations have seen a rise in wealth disparity, others have managed to reduce it. The question remains: what strategies can be employed to ensure a more equitable distribution of wealth? What are your thoughts on this matter? Feel free to share this article with your friends and engage in a discussion. Don't forget to sign up for the Daily Briefing, available every day at 6pm.