Turkey has emerged as the global leader in wealth growth, significantly outpacing other nations, according to UBS’s Global Wealth Report 2024. Despite high inflation levels, the country’s wealth per adult increased by over 157% from 2022 to 2023, a figure that dwarfs the gains seen in other countries. Russia and Qatar, the next highest in the ranking, saw wealth growth per adult of nearly 20% and just over 16%, respectively. In contrast, the United States experienced a modest increase of nearly 2.5%.
Turkey’s inflation rate currently hovers around 72%, a severe challenge for the nation’s 85 million residents, many of whom have experienced a sharp decline in purchasing power. Over the past five years, the Turkish lira has depreciated by approximately 83% against the U.S. dollar, with the exchange rate now at 33 lira per dollar. Despite these economic challenges, Turks who own assets such as real estate have seen their wealth grow as inflation drives up asset values.
UBS defines wealth as the value of financial and real assets, primarily housing, minus household debts. The report’s authors emphasized that inflation can boost wealth in nominal terms, particularly for those holding real assets like property, which tend to appreciate with rising inflation. Samuel Adams, an economist at UBS Global Wealth Management, explained that while asset owners benefit from this trend, those without such assets or with wages that fail to keep pace with inflation may see their financial situation worsen.
The report also highlights the significant impact of currency fluctuations on wealth growth. While Turkey’s wealth growth exceeded 63% in U.S. dollar terms, it soared to nearly 158% in Turkish lira. UBS notes that Turkey’s average wealth per adult has surged by 1,708% in local currency terms between 2008 and 2023.
Paul Donovan, Chief Economist at UBS Global Wealth Management, cautioned that being asset-rich does not necessarily translate to improved living standards, as many Turks face negative real income despite increasing asset values.
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