When looking at wealth per person on a country-by-country basis, is it more important to look at median wealth or average wealth?
Many experts believe that median wealth provides the most accurate picture of wealth since it identifies the middle point of a dataset, with half of the data points above this number, and half falling below it.
In this way, it is less impacted by extreme values, and gives a good representation of the “middle of the pack”.
With that said average wealth gives you a true average, even though it may get distorted by outliers, like the fortunes held by billionaires.
Either way, today’s graphic compares both average and median wealth across select countries, using data from the 2023 UBS Global Wealth Report.
Top countries by average wealth per person
In 2022, the global average wealth per adult stood at $84,718.
By these measures, Switzerland ranks at the top at $685,226 per person.
Over 15% of the population are millionaires, the third-highest rate in the world.
However, when looking at median wealth per person, it stands at $167,353, a difference of over $517,000.
Like Switzerland, five of the top 10 countries by average wealth are in Western Europe, including Denmark, Norway, the Netherlands, and Belgium.
The U.S. falls second, with a mean wealth per adult of $551,347.
Overall, it is home to 38% of global millionaires, outpacing the second-highest country, China, by more than three times.
With a significant wealth gap, income inequality in the U.S. is among the highest across developed nations.
Meanwhile, Australia ranks third with $496,819 mean wealth per adult.
Ranking seventh is Singapore, with the highest average wealth per adult across Asia.
Income inequality in Singapore falls at a similar level to America based on its Gini ratio.
Top countries by median wealth per person
Here’s how wealth shifts when looking from a median wealth per adult basis:
| Rank | Country | Median Wealth per Adult |
|---|---|---|
| 1 | Belgium | $249,937 |
| 2 | Australia | $247,453 |
| 3 | New Zealand | $193,065 |
| 4 | Denmark | $186,041 |
| 5 | Switzerland | $167,353 |
| 6 | UK | $151,825 |
| 7 | Norway | $143,887 |
| 8 | Canada | $137,633 |
| 9 | France | $133,137 |
| 10 | Netherlands | $112,450 |
| World | $8,654 |
Belgium ranks the highest, climbing past Australia for the first time.
High home ownership levels and elevated home prices have led household wealth to rise above other European countries.
Median wealth in the U.S. stood at $107,739, falling in 12th place.
Overall, median wealth has grown the fastest in China, increasing eightfold since 2000 to reach $27,273.
The country’s rapid economic growth has lifted many into the middle class, yet wealth inequality has also increased.
Biggest gaps in average and median wealth
Which countries have the starkest difference between average and median wealth per adult?
Across the dataset, the U.S. saw the steepest gap.
Median wealth per adult was $107,739—80.5% lower than average wealth levels.
This means that wealth ownership skews disproportionately to the country’s richest.
Following the U.S. were South Africa, Russia, and India for illustrating the widest disparities between average and median wealth.
On the other end of the spectrum was Belgium, where median wealth per adult was the closest to average wealth levels.
In this way, median wealth per person was $249,937 while average wealth was $352,814, reflecting less disparity.
Other countries with narrower gaps between median and average wealth per person included Greece, the UK, and Australia.
Guest author is Dorothy Neufeld, Advisor Channel Editor at the Visual Capitalist. You can read the original article here.
