Research conducted by the Adam Smith Institute reveals that Turkey, Russia, and Sweden are poised to witness the most significant increase in the proportion of millionaires in Europe by 2028.
According to the Institute’s Millionaire Tracker report, which examines the wealth of 36 nations, Taiwan tops the list worldwide with an impressive projected increase of 51%.
Leading the charge in Europe, Turkey is expected to experience a remarkable 34% rise in the number of individuals with more than $1 million (€915,000) in net wealth, encompassing various asset classes such as cash, real estate, shares, and private pension funds.
Turkey Steers Ahead in Wealth Growth
The UBS Global Wealth Report 2024, utilized in compiling these rankings, highlights Turkey’s stunning growth in personal wealth despite challenging economic circumstances. With a jaw-dropping increase of over 157% in wealth per adult from 2022 to 2023, Turkey outpaces all other nations. The closest competitors, Qatar and Russia, lag at nearly 20%, followed by South Africa at just above 16% and Israel at 14%.
This surge in wealth is particularly striking given Turkey’s current inflation rate of 72%, as reported by CNBC. While high inflation has squeezed the purchasing power of many within its 85 million-strong population, those holding assets like property are benefitting from increased valuations driven by inflationary pressures.
Despite ongoing geopolitical tensions, including the war in Ukraine and stringent economic sanctions, Russia is predicted to see a 23% increase in its millionaire population, placing it second in the European rankings.
The UK and Netherlands Face Decline
On the flip side, the UK and Netherlands are projected to rank lowest among the 36 nations analyzed, with both countries expected to experience a decrease in their millionaire population. The UK may suffer a 20% decline, while the Netherlands forecasts a reduction of 5%.
Saudi Arabia is the only other country anticipating a decrease, projected at 3%. The Adam Smith Institute attributes the decline of millionaires in the UK to a range of factors, including high taxation levels and a societal reluctance to embrace wealth creation.
“A combination of increasing taxation, frozen inheritance tax thresholds, potential capital gains tax hikes, the elimination of the non-domicile regime, and an unwelcoming culture towards wealth creators is driving millionaires out of the UK,” the report notes.
The Economic Landscape of Europe
Notably, Europe’s powerhouse economies like Germany and France are anticipated to see modest increases of 15% and 14%, respectively, ranking them towards the lower end of the spectrum. Greece, with a mere 2% increase, finds itself near the bottom, alongside the UK, Netherlands, Saudi Arabia, and the UAE, which is expected to see only a 1% growth.
Looking beyond Europe, global giants such as the US and China are also predicted to experience modest growth by 2028, with the US seeing a 12% rise in millionaires and China 8%.
Photo credit & article inspired by: Euronews
