Israel’s Average Wealth Climbs in 2023, UBS Report Shows

A recent UBS report ranked Israel 18th globally in terms of average wealth per adult, at $260,000 in 2023. This reflects a significant 14% increase compared to 2022, outpacing the global average growth of 4.2%. However, the report also highlights a potential concern: the growth in median wealth in Israel was weaker. This suggests that the economic benefits may not be reaching all citizens equally, and wealth inequality might be on the rise.

Over 180,000 Israelis, or about one in every ten, have a net worth exceeding $1 million. Additionally, more than 2.5 million Israelis possess wealth between $100,000 and $1 million.

Contrary to global trends, Israel has seen a decrease in wealth inequality since the 2008 financial crisis. Over the past 15 years, the wealth gap has narrowed by 12%, suggesting inclusive economic growth that benefits both lower and upper economic strata. This period has been particularly prosperous for Israel overall, with average wealth in shekels growing by 142%. Even more impressively, median wealth has more than tripled, increasing by 220%.

Globally, UBS reported that after a 3% dip in 2022, mostly due to a strong US dollar, global wealth rebounded in 2023 with a growth of 4.2%. This positive trend held true regardless of currency used. The growth was particularly strong in Europe, the Middle East, and Africa (EMEA) at 4.8% and Asia-Pacific (APAC) at 4.4%. Notably, with inflation slowing down, real wealth growth (adjusted for inflation) even surpassed nominal growth, reaching nearly 8.4%.

UBS further reported:
In 2023, adults in EMEA were the wealthiest on average (USD 166,000), followed by APAC (USD 156,000), and the Americas (USD 146,000), but their average wealth grew at the slowest pace since 2008 at around 41% compared to 122% in APAC and 110% in the Americas in the same timeframe.

Overall wealth has grown fastest in APAC – by nearly 177% since 2008 – and has been accompanied by significant spike in debt, which has grown by over 192% in the same timeframe.

Although the Americas have trailed the global wealth rebound in 2023, the United States in particular have bucked the trend of slowing growth over time, increasing their compound annual growth rate from 4% between 2000-2010, to 6% between 2010-2023.

Negative wealth growth in USD between the start of the second decade and 2023 has only been found in Greece, Japan, Italy, and Spain.
On an individual market level, Switzerland continues to top the list for average wealth per adult, followed by Luxembourg, Hong Kong SAR and the United States.

The biggest wealth increases in 2023 occurred in Türkiye, Qatar, and Russia, with Türkiye leaving all others behind at a staggering growth of 157%.

Presently, the United States, followed by Mainland China and the UK have the highest number of USD millionaires, with the US accounting for 38% of global millionaires. By 2028, according to the report’s forecast, the number of adults with wealth of over USD one million will have risen in 52 of the 56 markets analyzed, and is estimated to grow by 50% in Taiwan.

While average wealth is significantly higher than median wealth in almost all markets included in the report’s sample, the United Arab Emirates, Germany, Switzerland, Israel, and Mexico, among others, have shown stronger growth in median compared to average wealth since 2008. This indicates that adults in lower wealth brackets have seen their wealth increase faster than those in higher brackets.

Although inequality has tended to increase over the years in fast-growing markets, it has diminished in several developed mature economies and globally, the number of adults in the lowest wealth bracket is in constant decline, while all others are steadily expanding.