Turkey, Russia, and Sweden to Lead Europe in Millionaire Growth by 2028

Research from the UK economic think tank, the Adam Smith Institute, predicts that Turkey, Russia, and Sweden will see the largest increases in the proportion of millionaires in Europe by 2028. According to the findings from the Institute’s Millionaire Tracker report, which analyzes 36 countries, including major economies like the US, Japan, France, and Germany, Taiwan is expected to experience the greatest overall increase, with a projected 51% rise in the proportion of millionaires.

In Europe, Turkey is projected to lead the way, with a 34% increase in the number of individuals holding more than $1 million (€915,000) in net wealth, which includes assets like cash, shares, property, and private pension funds. The UBS Global Wealth Report 2024, which contributed data to the rankings, highlights Turkey’s rapid personal wealth growth despite the country facing difficult economic conditions.

The report noted that Turkey saw a remarkable 157% increase in wealth per adult between 2022 and 2023, outpacing other nations. The next closest countries, Qatar and Russia, recorded increases of nearly 20%, while South Africa saw just over 16%, and Israel followed with 14%. This wealth surge in Turkey has occurred despite inflation soaring to 72%, severely impacting the purchasing power of many of the country’s 85 million citizens. However, for those who own assets like property, inflation has driven up the value of their holdings, increasing their wealth.

Despite the ongoing war in Ukraine and heavy economic sanctions, Russia is expected to see the second-largest rise in the proportion of millionaires in Europe, with a 23% increase by 2028.

At the other end of the spectrum, the UK and the Netherlands are forecasted to lose millionaires. The UK is projected to see a 20% decline, while the Netherlands is expected to experience a 5% decrease in the proportion of its wealthy population. Saudi Arabia is also predicted to see a 3% drop in millionaires, the only other country besides the UK and the Netherlands to see a reduction in the rankings.

The Adam Smith Institute attributes the UK’s projected decline in millionaires to several factors, including high taxes, frozen inheritance tax thresholds, and a perceived lack of support for wealth creation. The think tank noted that millionaires are leaving the UK due to increasing taxes, potential hikes in capital gains taxes, the abolition of the non-dom regime, and an unfavorable environment for wealth creators.

Interestingly, Europe’s largest economies, Germany and France, are expected to see only moderate increases in their millionaire populations, with growth rates of 15% and 14% respectively, placing them in the lower half of the rankings. Greece, with just a 2% projected increase, is among the lowest-ranked countries, with only the UK, the Netherlands, Saudi Arabia, and the UAE performing worse.

Global powerhouses like the US and China are forecasted to see modest growth in their millionaire populations by 2028. Analysts from the Adam Smith Institute predict a 12% increase in the US and an 8% rise in China, the world’s second-largest economy.

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