The web price of residents varies considerably throughout Europe, and it adjustments yearly. What actually issues is how the adjustments evaluate when adjusted for inflation.
Wealth per grownup elevated in an enormous majority of European international locations between 2023 and 2024, whereas a couple of noticed declines, in line with UBS’s International Wealth Report 2025.
Adjustments measured in native currencies are proven in each common and median values — we concentrate on the median for deeper evaluation, which is not affected by excessive outliers, whereas briefly mentioning averages.
Hungary recorded the best actual development in median wealth per grownup between 2023 and 2024, rising by 18.6%. The expansion additionally reached 15% or above in a number of different international locations, together with Lithuania (16.9%), Sweden (15.3%), Italy and Latvia (each 15%).
Within the report, amongst EU member states, candidate international locations, EFTA members, and the UK, solely Turkey and Belgium noticed a decline in median wealth per grownup. Turkey stands out with a pointy 20.9% drop, whereas Belgium recorded a extra average fall of 5.6%.
Of Europe’s 5 largest economies, Italy noticed the best actual development in wealth per grownup at 15% whereas the UK had the bottom at 5.3%. France (10.3%), Germany (9.5%), and Spain (9%) fell in between.
Switzerland, the wealthiest nation per grownup, noticed a 7.7% improve. Sweden and different Nordic international locations additionally recorded robust development, every exceeding 10%.
Outdoors Europe, South Korea (13.9%), Australia (10.7%), Canada (9.6%), and Japan (8.6%) noticed important features in 2024. The rise within the US was extra average at 2.3%. China and Russia recorded notable declines of 6.3% and eight.2%, respectively.
common wealth change as an alternative of median, a number of European international locations noticed declines. Each Turkey (–14.6%) and Belgium (–0.3%) noticed smaller common declines compared to their median values. Luxembourg (–1.3%), Estonia (–2.3%), France (–1.8%), and the UK (–3.6%) additionally recorded decreases.
Drivers behind adjustments in Turkey’s asset costs
So, what explains Turkey’s sharpest decline in wealth per grownup between 2023 and 2024?
Prof. Hakan Kara of Bilkent College in Ankara, and former chief economist on the Central Financial institution of Turkey, means that to know this pattern, one should look again over the previous 5 years.
He famous that between 2020 and 2023, an atmosphere of ample credit score and intensely low actual rates of interest led to a major surge in asset costs.
“This era witnessed a significant switch of wealth from savers to debtors, and from fixed-income households to companies. The International Alternate Protected Deposit scheme (KKM) additional strengthened this dynamic. As wealth inequality rose quickly, solely a slender phase of the inhabitants—these with entry to credit score or pre-existing financial savings—was in a position to profit from the asset worth increase,” he defined.
By mid-2023, with the normalisation of rates of interest, an actual correction in asset costs started. As housing, land, inventory, and bond costs declined in actual phrases, a corresponding erosion of actual wealth was noticed.
“We are able to see the 2023-24 interval as a correction of the 2020-22 interval”, he added.
5-year adjustments: Austria data the most important decline
‘Actual’ adjustments in wealth per grownup from the start of 2020 to the tip of 2024 reveal longer-term traits. Austria emerges as a significant outlier, with median wealth per grownup falling by 18%. The Netherlands (–2.3%) and Estonia (–0.1%) adopted.
In Europe, Cyprus recorded the best improve at 43.9%, adopted by Denmark, Latvia, and Lithuania — every with features of over 30%.
Actual median wealth per grownup development additionally exceeded 25% in Malta, Slovenia, Norway, Bulgaria, and Portugal.
Germany noticed the best rise amongst Europe’s prime 5 economies, with a 20.1% improve. Italy recorded the bottom at 4.7%. Spain (17.8%) and the UK (16.3%) posted robust development, whereas France noticed a extra average improve of 10.5%.
Main non-European international locations reported important development, with the US main at 45.8%, adopted by Russia (35.1%) and South Korea (31%).
In common phrases, the image adjustments fully. A number of international locations noticed declines in wealth per grownup. Cyprus, which recorded the best development in median wealth, emerged because the outlier with a –24.9% drop in common wealth per grownup.
Different important drops occurred in Austria (–13.1%), Malta (–11.3%), Estonia (–10.6%), Italy (–9.4%), and Eire (–7.8%). Switzerland, Luxembourg, the Netherlands, Belgium, Romania, and Slovakia additionally recorded comparatively average declines.
The affect of excessive inflation
“The contraction in actual common wealth per grownup on this interval was primarily attributable to excessive inflation within the involved international locations, significantly so in Austria, Belgium and the Netherlands, but additionally in Italy, albeit to a barely lesser extent”, the report famous.
The expansion within the dimension of the grownup inhabitants was an additional contributing issue, primarily within the Netherlands and, to a smaller diploma, in Switzerland in line with the report. In Switzerland’s case, foreign money depreciation was the first issue, adopted by inflation.
What do divergences counsel?
Divergences are putting in a number of international locations, the place adjustments in common and median wealth per grownup differ considerably. For instance, in Switzerland, barely adverse development in common wealth per grownup compares with a 14% rise in median wealth per grownup, whereas in Italy the figures are respectively –10% and nearly +5%.
“These divergences counsel slower wealth development on the greater finish of the spectrum than within the center part of the wealth distribution,” the report identified.
The identical dynamic was at work in Germany and the UK, too.