Bundesbank: Wealth inequality in Germany is growing

In Germany it is Wealth inequality According to a study, it has become larger again. Since the end of 2022, the so-called gap between rich and poor has been widening, according to one from the Bundesbank published report. The proportion of households with less wealth in total wealth, which had increased steadily since 2014, has fallen again since 2022.

The reason for this is the high Price and interest rate increases, as these particularly affect poorer households. The increase in wealth inequality must be seen “against the background of the recently high inflation rates, the associated tightening of monetary policy and the subdued economic growth,” said Bundesbank experts.

Since 2009, the Bundesbank has been collecting data on household assets and how they are developing. The average net worth has increased significantly since 2009. At that time, households with assets of more than 54,000 euros belonged to the richer half. In 2023, the average was already 103,000 euros – so it has almost doubled.

Assets in an international comparison

According to the report, wealth inequality in Germany is “quite high” in international comparison. The comparison is made possible by the so-called Gini coefficient: a Gini value of zero percent means that all citizens have the same wealth. At 100 percent, one citizen owns all of the assets. Inequality in the euro area, measured by the Gini value, is between 56 and 77 percent. “Germany ranks at the top with a value of almost 77 percent,” says the Bundesbank report.

However, the Bundesbank pointed out that statutory pension systems were not taken into account in the statistics. “Corresponding calculations for Germany show that net wealth inequality is significantly lower when statutory pension provision is taken into account than without inclusion.”