Malta’s Richest 10% Control 90% of the Country’s Business Wealth

Recent figures from the Central Bank of Malta reveal a striking increase in wealth disparity across the country, with the richest 10% now controlling a staggering 90% of Malta’s business wealth. According to data from the European Central Bank’s Distributional Wealth Accounts (DWA), the wealthiest 10% in Malta holds $51.4 billion, which accounts for 44.8% of the nation’s total household net wealth.

This concentration of wealth among the top 10% is nearly four times greater than the combined wealth of the bottom 50% of households, which collectively hold around $13.8 billion. The data also highlights that the wealthiest segment of the population has seen their net wealth grow by an extraordinary 160.7% since 2010. By contrast, the bottom half of households experienced a more modest increase of 94.1% over the same period.

The total household net wealth in Malta has more than doubled from approximately $65.3 billion in 2010 to almost $115 billion by the fourth quarter of 2023, yet this growth has been accompanied by widening inequality. The share of wealth held by the bottom 50% has decreased from 14.3% in 2010 to just 12% in 2023, while the top 10% have expanded their share from 39.7% to 44.8%. Similarly, the wealth held by the top 5% has increased from 26.6% to 31.7% during the same period.

These findings underscore a growing divide in wealth distribution, with a larger portion of Malta’s wealth becoming increasingly concentrated among the wealthiest households. Despite this trend, Malta’s wealth Gini coefficient—a metric used to measure inequality—has only seen a slight rise, moving from 0.54 in 2010 to 0.59 in 2023. This remains below the euro area average of 0.72, placing Malta among the least unequal economies in the region, according to the Central Bank’s DWA survey.

The report, which was authored by economists Warren Deguara and Janica Borg, also reveals that the wealthiest 10% of Maltese households have more diversified assets compared to other groups, with business wealth making up 24% of their portfolios. Notably, this same group holds 89.1% of all business wealth in the country.

In contrast, the bottom 50% of households have seen their share of debt and mortgages rise significantly, now accounting for $7.3 billion or 65.6% of total household debt, up from 47.5% in 2010. This increase largely reflects a rise in mortgage debt. Meanwhile, the debt levels for the wealthiest 10% have remained relatively stable over the past decade, standing at $1.4 billion.

Have you read?
Richest Countries In Europe In 2024.
Most Attractive Countries To Private Equity, Venture Capital, and Hedge Fund Investors.
Revealed: Highest-paid news media executive in the United Kingdom.
Countries Leading the Way on Climate Change.
World’s Best Countries For Adventure Tourism.