In this article, we will be taking a look at the 20 countries with highest wealth inequality. To skip our detailed analysis, you can go directly to see the 5 Countries With Highest Wealth Inequality.
Global Wealth Inequality
Global income and wealth inequality have been a prime reason why the world suffers from economic crises each year. Income inequality has been a dark reality of the world for ages, initially created through monarchies when all wealth was consumed by the upper class. Since then, the control of global wealth has been among a few wealthy families. As we mentioned earlier, the richest 1% of the world have gathered two-thirds of all new wealth, worth $42 trillion, generated since 2020. The global millionaires held approximately half of net household wealth in 2022. Though total global wealth was decreasing during 2022 and 2023 due to high inflation and interest rates, global inequality continues to be on the rise. According to Bloomberg, the 25 richest families in the world own an accumulated wealth of almost $2.13 trillion. These 25 families have added a total of $1.5 trillion to their wealth since 2022.
The total global wealth stood at $454.38 trillion by the end of 2022, as per Credit Suisse’s Global Wealth Databook 2023. Africa is the poorest continent on the planet with some of the poorest countries in the world. The total wealth of Africa was $5.9 trillion in 2022, the least among the other continents of the world. Latin America was the second least wealthiest continent having a total wealth of $15.07 trillion, as of 2022. While, North America and Europe were the wealthiest regions with $151.17 trillion and $104.41 trillion of total wealth, recorded in 2022. North America and Europe also suffered the highest wealth drop of $10.9 trillion in 2022, compared to 2021. Asia Pacific suffered a wealth loss of about $2.1 trillion in 2022. This was mainly due to increased inflation, high interest rates, and extreme fluctuations in exchange rates.
According to the World Inequality Report 2022, the share of the bottom 50% of the world in total earnings is less than 15%, excluding Europe. The share in total earnings of the same 50% bottom population is less than 10% in Latin America, Sub-Saharan Africa, and the MENAS region. While, the share of the richest 10% of the world population is over 40% of total global earnings, and in some regions, it is closer to 60%. The distribution of global wealth is the most striking thing about the global wealth inequality. The bottom 50% of people have almost a 2% share of the total global wealth compared to the 76% wealth share of the top 10%. The alarming thing is that the rich are getting richer and the poor are getting poorer. The top 1% of people in the world are growing at a faster rate compared to the rest of the global population. Between 1995 and 2021, the top 1% captured 38% of the global increase in wealth, while the bottom 50% gathered a mere fraction of 2%.
The World Inequality Report shows that an average adult individual earned around $23,380 in 2021 and an average adult had a wealth of $102,600 in 2021. The top 10% of richest people currently take away approximately 52% of global income, compared to 8.5% earned by the poorest people in the world. As we stand today, global inequality is extreme, almost as high as it was at the peak of Western imperialism in the early 20th century, as per the World Inequality Report.
Poverty: A Big Cause of Inequality
Poverty is one of the biggest causes of global income inequality. As per the 2023 Multidimensional Poverty Index (MPI) report, out of the 6.1 billion population from 110 countries, 1.1 billion people suffer from extreme poverty. Out of the 1.1 billion poor people, 730 million live in middle-income countries and 387 million live in low-income countries. Similarly, most of these 1.1 billion people are based in Sub-Saharan Africa, around 534 million people to be exact. The remaining 389 million individuals are based in South Asia. This shows that almost five out of six poor people reside in Sub-Saharan Africa or South Asia. Burundi, Central African Republic, and Somalia are the poorest countries in Africa, and Nepal, Afghanistan, and Tajikistan are the poorest countries in Asia.
Business in Countries with the Highest Wealth Inequality
The countries in the world with the highest wealth inequality are not just undergoing a vital social issue, but are also facing major economic issues too. In these difficult times, companies are choosing more sustainable ways of doing business, emphasizing the reduction of carbon footprint. Apart from that, the core functions of businesses in countries with wealth inequality must be to support low-income individuals and provide them with equal growth opportunities. In this, banks have a big role to play in helping the development of countries through financing and financial services.
Arab Banking Corporation B.S.C. (ABCB.BH) is one of the leading international banks based out of Bahrain and operates as Bank ABC. On December 12, Arab Banking Corporation B.S.C. (ABCB.BH) announced a multi-million-dollar financing agreement with a leading sustainable energy partner in the Middle East and Africa, Yellow Door Energy. Arab Banking Corporation B.S.C. (ABCB.BH) is focused on green financing to support businesses in reaching the COP28 UAE’s Climate Finance objectives. Through Bank ABC’s financing, Yellow Door Energy will refinance 25 solar PV assets, located in Majid Al Futtaim shopping malls across the UAE, Bahrain, and Oman. During the signing agreement, Ammar Khalil, Senior Executive Officer at Bank ABC said:
“At Bank ABC in DIFC, we are focused on arranging and advising financing deals that align with the Group’s ESG priorities and meet our clients’ unique needs. We thank Yellow Door Energy for this opportunity and wish Majid Al Futtaim a seamless transition.”
Standard Bank Group Limited (OTC:SGBLY) is a top South African bank and financial services group. On December 11, Standard Bank Group Limited (OTC:SGBLY) announced the signing of a sustainability-linked syndicated term loan worth $400 million. The sustainability coordinators of the term loan were Industrial and Commercial Bank of China Limited (SHA:601398), Mizuho Financial Group, Inc. (NYSE:MFG), and Standard Chartered PLC (LON:STAN). Standard Bank Group Limited (OTC:SGBLY) aims to provide financial products and services that support positive ESG outcomes, including sustainability-linked loans and bonds, green and social loans and bonds, and impact investing products, among others. Standard Bank Group Limited (OTC:SGBLY) targets to mobilize approximately ZAR 250 billion in sustainable finance by 2026.
Al Salam Bank B.S.C. (SALAM.BH) is another top bank based out of Bahrain. On November 15, Al Salam Bank B.S.C. (SALAM.BH) announced its collaboration with Solidarity Bahrain to launch its comprehensive Sharia-compliant insurance package, Al Salam Takaful. Al Salam Bank B.S.C.’s (SALAM.BH) Sharia-compliant insurance package will allow the citizens of Bahrain to benefit from auto, travel, personal accident insurance, domestic helpers, pleasure craft, and group medical health for families, among others. Companies and Small and Medium-sized Enterprises will have the option of Takaful coverage for office comprehensive, performance bond, marine, and group medical insurance.
Now, let’s take a look at countries with the highest levels of wealth inequality.
20 Countries With Highest Wealth Inequality
Our Methodology
To determine the countries with highest wealth inequality, we used the Gini coefficient of countries. The Gini coefficient describes income inequality or wealth distribution. A Gini coefficient of 0 represents perfect equality and a Gini coefficient of 100 means perfect inequality. We took the data of the Gini coefficient from Credit Suisse’s Global Wealth Databook 2023. The countries with highest wealth inequality are ranked in ascending order of their Gini coefficients. For the countries with similar Gini coefficients, we used the per capita wealth, as of 2022, as a secondary metric to break the tie.
We have also mentioned GDP (PPP) for each country to give an idea of the overall economy of the countries with highest wealth inequality. We have taken GDP (PPP) data from the International Monetary Fund’s (IMF) database.
20 Countries With Highest Wealth Inequality
20. Nigeria
Gini Coefficient: 86.50%
Wealth Per Capita (2022): $6,879
Nigeria is one of the richest countries in Africa and has a GDP of $1.37 trillion. Nigeria had a wealth per capita of $6,879 in 2022. With a Gini coefficient of 86.50%, Nigeria is placed 20th among the countries with highest wealth inequality.
19. Saudi Arabia
Gini Coefficient: 86.70%
Wealth Per Capita (2022): $90,975
Saudi Arabia is one of the fastest-growing economies in the Middle East. The country has a GDP of $2.25 trillion and a Gini coefficient of 86.70%. Saudi Arabia is one of the countries with highest wealth inequality.
18. Russia
Gini Coefficient: 86.90%
Wealth Per Capita (2022): $39,514
Russia is a leading economy that has a GDP of $5.06 trillion. In 2022, the country’s wealth per capita stood at $39,514 and had a Gini coefficient of $86.90%. Russia ranks among the countries with highest wealth inequality.
17. Namibia
Gini Coefficient: 87%
Wealth Per Capita (2022): $20,690
Namibia is one of the poorest countries in Africa having a GDP of $30.66 billion. The country had a wealth per capita of $20,690 in 2022. With a Gini coefficient of 87%, Namibia is placed 17th among the countries with highest wealth inequality.
16. Equatorial Guinea
Gini Coefficient: 87.10%
Wealth Per Capita (2022): $30,333
Equatorial Guinea is a Central African country having a GDP of $28.36 billion. Equatorial Guinea’s wealth per capita of $30,333 and a Gini coefficient of 87.10% places it among the countries with highest wealth inequality.
15. Laos
Gini Coefficient: 87.30%
Wealth Per Capita (2022): $6,191
Located in Southeast Asia, Laos has a GDP of $74.21 billion. The country had a wealth per capita of $6,191 and a Gini coefficient of 87.30%. Laos is ranked 15th among the countries with highest wealth inequality.
14. Philippines
Gini Coefficient: 87.30%
Wealth Per Capita (2022): $14,486
The Philippines has a GDP of $1.28 trillion and had a wealth per capita of $14,486 in 2022. With a Gini coefficient of 87.30%, the Philippines ranks among the countries with highest wealth inequality.
13. Sweden
Gini Coefficient: 87.40%
Wealth Per Capita (2022): $296,800
Sweden is a Scandinavian country having a GDP of $716 billion. In 2022, the country had a wealth per capita of $296,800 and a Gini coefficient of 87.40%. Sweden is placed 13th among the countries with highest wealth inequality.
12. Oman
Gini Coefficient: 87.50%
Wealth Per Capita (2022): $48,951
Oman has a GDP of $200.3 billion and has a reported wealth per capita of $48,951, as of 2022. With a Gini coefficient of 87.50%, Oman is one of the countries with highest wealth inequality.
11. Yemen
Gini Coefficient: 88.40%
Wealth Per Capita (2022): $6,492
Yemen is one of the poorest countries in the world having a GDP of $69.96 billion. The country had a wealth per capita of $6,492 in 2022 and a Gini coefficient of 88.40%. Yemen ranks among the countries with highest wealth inequality.
10. Brazil
Gini Coefficient: 88.40%
Wealth Per Capita (2022): $29,452
Brazil is one of the biggest economies in South America. In 2022, the country’s wealth per capita was reported at $29,452. With a Gini coefficient of 88.40%, Brazil is placed 10th among the countries with highest wealth inequality.
9. Botswana
Gini Coefficient: 88.50%
Wealth Per Capita (2022): $16,567
Botswana is one of the countries with highest wealth inequality with a Gini coefficient of 88.50%. Botswana has a GDP of $51.89 billion. The country’s wealth per capita stood at $16,567, as of 2022.
8. Papua New Guinea
Gini Coefficient: 88.60%
Wealth Per Capita (2022): $8,606
Papua New Guinea has a GDP of $41.79 billion. The country had a wealth per capita of $8,606 in 2022. Papua New Guinea’s Gini coefficient of 88.60% places it among the countries with highest wealth inequality.
7. South Africa
Gini Coefficient: 88.80%
Wealth Per Capita (2022): $23,956
South Africa is one of the wealthiest countries in Africa and has a GDP of $997.44 billion. The country had a wealth per capita of $23,956 and a Gini coefficient of 88.80%. South Africa is placed seventh among the countries with highest wealth inequality.
6. Bahamas
Gini Coefficient: 88.90%
Wealth Per Capita (2022): $72,971
The Bahamas is a country based in the Caribbean. The country has a GDP of $18.15 billion and a Gini coefficient of 88.90%. With a wealth per capita of $72,971, the Bahamas is ranked among the countries with highest wealth inequality.
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Disclosure: None. 20 Countries With Highest Wealth Inequality is published on Insider Monkey.