The number of high net worth individuals (HNWIs) in Europe has grown steadily over the past decade. This trend reflects broader wealth accumulation patterns across the continent, with the richest segments of society gaining an increasingly larger share of total wealth. Despite this concentration at the top, recent years have seen some positive signs in terms of overall income inequality reduction in Europe.Â
Wealth concentration at the top
From 1995 to 2021, the wealthiest one percent in Europe increased their share of wealth from 22 percent to over 26 percent. During this same period, the bottom 90 percent saw their collective share shrink. This concentration of wealth at the top aligns with the growth in HNWIs observed in countries in Europe. The top 10 percent of wealthy Europeans now own more than the remaining 90 percent combined, highlighting the significant wealth disparity that persists despite the overall increase in HNWIs.Â
Signs of improving income equality
While wealth concentration has increased, there are indications that income inequality in the European Union has been improving in recent years. The Gini coefficient, a measure of income inequality, has been declining in both the EU and Eurozone since 2014, reaching new lows of 29.6 and 29.8 respectively in 2023. Additionally, the income ratio between the top 20 percent and bottom 20 percent of earners in the EU has fallen from 5.22 in 2015 to 4.74 in 2022. These trends suggest that despite the growth in HNWIs, efforts to address income disparities may be having some positive effects across the broader population.Â