Inequality has increased in fast-growing markets but has decreased in several developed economies. In these economies, middle wealth segments have seen their wealth grow faster than higher wealth brackets.
Since 2008, global wealth has risen consistently despite recessions and financial crises, with only the lowest wealth band in constant decline while others steadily expand.
Though inflation affects these figures, it does not change the overall growth in wealth. The UBS Global Wealth Report 2024 indicates that inequality rises as wealth per person doubles, triples, or quadruples over a decade, but material living standards improve for all. Therefore, considering wealth per adult is important.
“Adults with less than USD 10,000 have nearly halved from over 75% in 2000 to below 40% in 2023” the report highlighted
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The Gini Index measures wealth disparity within a society, where a score of zero indicates perfect equality (everyone has equal wealth) and 100 indicates maximum inequality (one person holds all the wealth).
It is calculated by comparing a population’s actual income distribution to a perfectly equal distribution, with the difference reflecting the level of inequality.
Here are the top 10 countries with the highest wealth inequality in 2023
1. South Africa: Gini Index Score – 82
South Africa tops the list with a Gini index score of 82. Despite being one of Africa’s most developed economies, the legacy of apartheid, which entrenched racial and economic divides, continues to affect the country. A small elite enjoys significant wealth, while a large portion of the population lives in poverty. The country’s economic structure, marked by high unemployment rates and inadequate access to education and healthcare, exacerbates inequality.
2. Brazil: Gini Index Score – 81
Brazil ranks second with a Gini index score of 81. The country’s wealth disparity is rooted in its colonial past, where a small elite controlled landholdings. Modern Brazil sees this inequality reflected in contrast between affluent urban centres and impoverished favelas. While the country has made strides in reducing poverty, income inequality remains high, driven by unequal access to education, healthcare, and social services.
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3. United Arab Emirates: Gini Index Score – 77
The United Arab Emirates (UAE), known for its wealth derived primarily from oil and gas, holds the third position with a Gini index score of 77. The majority of the population, including many migrant workers, experiences limited upward mobility and economic disparity. This wealth concentration is further highlighted by the difference in living standards between the Emirati elite and low-wage expatriate workers who make up much of the population.
4. Saudi Arabia: Gini Index Score – 77
Saudi Arabia, another oil-rich nation, shares the third position with the UAE, also scoring 77 on the Gini index. While the country has experienced economic growth and modernization, the wealth generated from its oil reserves remains concentrated in the hands of a few. The Saudi government’s efforts to diversify the economy and reduce dependency on oil have yet to address the underlying issues of wealth inequality, with portions of the population still lacking access to economic opportunities.
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5. Sweden: Gini Index Score – 75
Sweden’s inclusion in this list might come as a surprise, given its reputation as a model of social democracy with welfare policies. However, Sweden’s Gini index score of 75 reflects a growing divide in wealth distribution. In recent years, Sweden has seen a rise in income inequality, driven by factors such as the deregulation of financial markets and the increasing wealth of the country’s richest citizens. While the country maintains a welfare system, the gap between the wealthiest and the poorest has widened.
6. United States: Gini Index Score – 75
The United States shares the fifth spot with Sweden, also scoring 75 on the Gini index. The wealth inequality in the U.S. is stark, with the richest 1% of the population owning a significant portion of the nation’s wealth. Factors contributing to this disparity include wage stagnation for the middle and lower classes, the decline of labour unions, and tax policies favouring the wealthy. The economic divide in the U.S. is evident in various aspects of life, from education and healthcare to housing and employment opportunities.
7. India: Gini Index Score – 73
India, a nation of over 1.4 billion people, ranks seventh with a Gini index score of 73. Despite economic growth and the emergence of a middle class, India struggles with severe wealth inequality. The country’s economic boom has disproportionately benefited the wealthy, while millions remain in poverty. Contributing factors include a large informal economy, unequal access to education, and a rural-urban divide that leaves many without access to basic services.
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8. Mexico: Gini Index Score – 72
Mexico, with a Gini index score of 72, occupies the eighth spot on the list. The country’s wealth disparity is a reflection of its long history of political and economic inequality. A small elite controls a large portion of the nation’s wealth, while a significant percentage of the population lives in poverty. Challenges such as corruption, limited access to education, and a large informal sector contribute to the persistence of inequality in Mexico.
9. Singapore: Gini Index Score – 70
Singapore, known for its economic success and standard of living, ranks ninth with a Gini index score of 70. Despite its prosperity, the wealth gap in Singapore is widening. The city-state’s low tax regime and pro-business policies have led to significant wealth accumulation at the top, while low-income workers face rising costs of living and limited social mobility. The government has introduced measures to address inequality, but the gap remains substantial.
10. Indonesia: Gini Index Score – 68
Indonesia rounds out the list with a Gini index score of 68. As Southeast Asia’s largest economy, Indonesia has seen rapid economic growth in recent years. However, this growth has not been evenly distributed, with a significant portion of the population still living in poverty. Factors such as corruption, limited access to education, and a large informal sector contribute to the country’s wealth inequality.
