Income distribution inequality in Turkey: 1 percent owns 40 percent of the wealth – Last Minute Economic News
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Turkey is one of the countries with the highest inequality in wealth distribution in Europe. The richest 1 percent in Turkey receives 40 percent of the wealth in the country. According to this criterion, Turkey ranks first in Europe with inequality in wealth distribution.
Considering the share of wealth received by the richest 5 percent and the richest 10 percent, Turkey ranks second. Türkiye ranks third in the Gini coefficient, which shows the inequality of wealth distribution.
INCOME DISTRIBUTION INJUSTICE IN TURKEY
According to Ekonomim’s compilation of data published by Credit Suisse and UBS, wealth distribution in Turkey is quite unfair. There are many indicators of this. The first is the Gini coefficient of wealth distribution inequality. While 0 indicates absolute equality, as this number increases, inequality increases.
In this criterion, Türkiye ranks third among 34 European countries. Turkey’s coefficient is 80.2. While this rate is 87.4 in Sweden, which ranks first, it is 80.4 in Latvia, which ranks second.
The country with the lowest wealth distribution inequality is Slovakia with 50.8 points. Belgium (59.6), Malta (60.9) and Slovenia (64.4) follow.
THERE IS INEQUALITY IN THE SCANDINAVIAN COUNTRIES TOO
The inequality of wealth distribution in the Nordic countries, which are among the best countries in the world and in Europe in many areas such as income distribution, democratic values and happiness, also attracts attention.
In addition to Sweden, which ranks first, other Scandinavian countries also rank above average. Among the EU’s “Big Four”, Germany is the country with the highest wealth inequality.
THE RICHEST 1 PERCENT HOLDS 40 PERCENT OF THE WEALTH
According to the report, the biggest imbalance in the share of wealth received by the richest people is in Turkey.
In Turkey, the richest 1 percent own 39.5 percent of the wealth. It ranks first among 21 European countries in this field. The country with the lowest wealth of the richest 1 percent is Belgium with 13.5 percent.
In some other countries, this share is as follows: Germany (30.4 percent), Greece (25 percent), France (21.1 percent) and England (20.6 percent).
Considering the share of wealth received by the richest 5 percent and 10 percent, Turkey ranks second after Sweden. The country with the lowest inequality in these areas is Belgium again.
In Turkey, the richest 5 percent own 59.2 percent of the wealth. The richest 10 percent own 69.8 percent of the wealth.
HOW MUCH WEALTH DO PEOPLE HAVE IN TURKEY?
When we look at the wealth distribution of the adult population, it becomes clear that the majority of Turkey’s people have very little wealth. The wealth distribution segments are as follows:
- less than 10 thousand dollars
- Between 10 thousand and 100 thousand dollars
- Between 100 thousand and 1 million dollars
- more than $1 million
Accordingly, in 2022, 71 percent of the people in Turkey will have a wealth of less than 10 thousand dollars. Turkey is by far at the top of the list of adults with wealth less than 10 thousand dollars. In Serbia, which ranks second in this segment, this rate is 40 percent. In Germany, this rate is at the lowest level with 10 percent.
In Turkey, the rate of adults with a wealth of 10 thousand to 100 thousand dollars is 27 percent. 2 percent of adults have a wealth of 100 thousand to 1 million dollars. The rate of those with more than $1 million in wealth is 0.1 percent.
Iceland comes out on top with 21 percent of adults with more than $1 million in wealth. In Germany, 3.9 percent of adults have a fortune of more than $1 million.
WEALTH PER ADULT: TURKEY IS BY FAR LAST
According to the report compiled by Euronews, Turkey ranks last by far in terms of wealth per adult in both average and median indicators.
The average wealth of adults in Turkey is 16.7 thousand Euros. In Bosnia-Herzegovina, just above it, the amount of wealth is 31.9 thousand Euros.
At the top is Switzerland with 650.7 thousand Euros. Wealth per adult is also quite high in Scandinavian countries.
This amount is as follows in some other countries: France 296.5 thousand; Germany 243.3 thousand and Greece 100.4 thousand.
Median wealth per adult allows for a fairer comparison. The median is the number in the middle when ranked from smallest to largest.
Even if the difference between countries decreases in median wealth, Turkey still ranks last among 35 countries.
Accordingly, the median wealth per adult in Turkey is only 5.2 thousand Euros. In Serbia, just above Turkey, this amount is three times the amount in Turkey: 15.6 thousand Euros.
At the top is Iceland with 392.4 thousand Euros. In Germany, this amount is 63.4 thousand Euros.
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