Turkey surpasses every nation to emerge as global wealth leader
Turkey has emerged as the global leader in wealth growth, boasting an impressive 157% increase in wealth per adult between 2022 and 2023.
This was announced in the 2024 Global Wealth Report drafted by Swiss Bank, Union Bank of Switzerland (UBS).
“Türkiye stands out with a staggering growth of over 157% in wealth per adult between 2022 and 2023, leaving all other nations far behind,” Swiss bank UBS wrote.
According to the report, one of the primary drivers of this wealth increase is the significant rise in asset prices, particularly in real estate. As inflation soared to over 71%, the value of assets like homes also surged, contributing to the overall increase in wealth.
Turkey's wealth growth stands in contrast to other countries. The next-highest countries in terms of average wealth growth per adult were Qatar and South Africa, with increases of nearly 20% and 16%, respectively. In comparison, the United States saw a modest 2.5% growth in average wealth per adult.
While the wealth growth figures are impressive, they come with significant challenges. The high inflation rate in the country has eroded the purchasing power of many Turks, leading to economic hardships for a large portion of the population.
The Turkish lira has lost nearly 83% of its value against the dollar over the past five years, further complicating the economic landscape.
However, the report expands that the world in general is recovering quickly from the 2022 wealth slump.
"Last year, global wealth rebounded from its 2022 slump. Wealth is steadily growing throughout the world – albeit at different speeds – with very few exceptions. The proportion of people in the world in the lowest wealth bracket has shrunk since 2008, while the proportion of people in every other wealth bracket has grown," UBS said.
Additionally, the bank projects that by 2028, the world will experience a huge leap in adults with wealth over a million dollars.
"By 2028, the number of adults with wealth of over USD one million will have risen in 52 of the 56 markets in our sample, according to our estimates. In at least one market – Taiwan – this increase may reach 50%. Two notable exceptions are expected to be the United Kingdom and the Netherlands," the report adds.
