By Michael Yardney April 15, 2020

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In which country do the richest people live? The answer may surprise you

Money & You
In which country do the richest people live? The answer may surprise you

Have you ever wondered which countries have the most wealth per capita?

Visual Capitalist provided the following chart this which uses data from the ninth Credit Suisse Global Wealth report, which ranks countries by average wealth, calculated as gross assets per adult citizen.

While using such a metric certainly gives a quick snapshot of wealth per capita, it doesn’t necessarily show the complete picture.

Some argue, for example, that calculating the mean doesn’t factor in the gap between the richest and poorest in a population—also known as wealth inequality.

For this reason, Visual Capitalist compared this number to median wealth for each country, providing a separate angle on which countries really have the most wealth per capita.

Mean or Median: Which Makes More Sense?

Below, Visual Capitalist visualised a hypothetical example of two groups of people, each earning various sums of money, to show how average (mean) and median calculations make a difference.

What can we observe in both datasets?

Total wealth: $2,000
Total people: 15 people
Average wealth: $2,000 ÷ 15 = $133

However, that’s where the similarities end.

In the first group, wealth is distributed more evenly, with the disparity between the lowest-paid and highest-paid being $300.

The median wealth for this group reaches $100, which is close to the average value.

In the second group, this gap climbs to $495, and the median wealth drops sharply to only $30.

Scaling up this example to the true wealth of nations, we can see how the median wealth provides a more accurate picture of the typical adult, especially in societies that are less equal.

Let’s see how this shakes out when ranking the world’s most affluent countries.

Ranking Top Contenders on Wealth per Capita

When it comes to wealth per capita, it’s clear that Australia and Switzerland lead the pack.

In fact, the data shows that both nations top the lists for both mean and median wealth.

However, both nations also have the highest absolute household debt-to-GDP ratios in the world: in 2018, Switzerland’s levels reached nearly 129%, while Australia followed behind at 120%.

Here is a full ranking of the top 20 countries by mean and median wealth:

Rank	Country	Mean wealth per adult	Country	Median wealth per adult
#1	Switzerland	$530,244	Australia	$191,453
#2	Australia	$411,060	Switzerland	$183,339
#3	United States	$403,974	Belgium	$163,429
#4	Belgium	$313,045	Netherlands	$114,935
#5	Norway	$291,103	France	$106,827
#6	New Zealand	$289,798	Canada	$106,342
#7	Canada	$288,263	Japan	$103,861
#8	Denmark	$286,712	New Zealand	$98,613
#9	Singapore	$283,118	United Kingdom	$97,169
#10	France	$280,580	Singapore	$91,656
#11	United Kingdom	$279,048	Spain	$87,188
#12	Netherlands	$253,205	Norway	$80,054
#13	Sweden	$249,765	Italy	$79,239
#14	Hong Kong	$244,672	Taiwan	$78,177
#15	Ireland	$232,952	Ireland	$72,473
#16	Austria	$231,368	Austria	$70,074
#17	Japan	$227,235	South Korea	$65,463
#18	Italy	$217,727	United States	$61,667
#19	Germany	$214,893	Denmark	$60,999
#20	Taiwan	$212,375	Hong Kong	$58,905

The United States boasts 41% of the world’s millionaires, but it’s clear that the fruits of labor are enjoyed by only a select group—average wealth ($403,974) is almost seven times higher than median wealth ($61,667). This growing inequality gap knocks the country down to 18th place for median wealth.

The Nordic countries of Norway and Denmark can be found in the top ten for average wealth, but they drop to 12th place ($80,054) and 19th place ($60,999) respectively for median wealth. Despite this difference, these countries also provide a strong safety net—including access to healthcare and education—to more vulnerable citizens.

Finally, wealth in Japan is fairly evenly distributed among its large middle class, which lands it in seventh place on the median wealth list at $103,861. One possible reason is that the pay gap ratio between Japanese CEOs and the average worker is much lower than other developed nations.

With reducing income inequality as a priority for many countries around the world, how might this list change in coming years?

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Footnote: All data estimates are using mid-2018 values, and reflected in US$.

About Michael Yardney Michael is the founder of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media.