Ankara: In a surprising turn of events, Turkey has outpaced the rest of the world in the annual global wealth ranking, despite its high inflation levels. According to the Global Wealth Report 2024 by Swiss bank UBS.
As per reports, Turkey saw an astonishing 157 percent increase in wealth per adult from 2022 to 2023, significantly surpassing other nations.
Following Turkey, Russia and Qatar experienced the next highest growth in average wealth per adult at nearly 20 percent, with South Africa also seeing a notable increase of just over 16 percent. In contrast, the United States witnessed a modest 2.5 percent growth in average wealth per adult.
Turkey's inflation rate stands at a staggering 72 percent, severely impacting the purchasing power of its 85 million citizens. Over the past five years, the Turkish lira has depreciated by nearly 83 percent against the dollar, currently trading at 33 lira to the dollar as of 09:07 a.m. London time on Wednesday. However, Turks who own assets such as homes have seen their wealth increase as inflation drives up the value of these holdings.
Samuel Adams, an economist at UBS Global Wealth Management, stated, "In certain ways, the high pace of inflation also helps explain why wealth has risen much much more in local currency terms, at least [more] than in other countries because it’s worth keeping in mind that wealth is measured in nominal terms."
Adams further elaborated, "If inflation is very high, what tends to happen is that if you have a real asset like housing, the house prices tend to rise in line with inflation, if not even faster. So those people with homeownership, or who have equities, which also tend to perform fairly well in those environments, they tend to see their wealth accumulate a bit faster."
FIRST Business Portal addressing the potential of business capability of North East Region.
