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UBS highlights deepening wealth inequality since 2020

Cyprus Mail · 2026-07-06

AI SUMMARY

• What happened: UBS's annual Global Wealth Report revealed that global personal wealth grew by 10.8% in 2025, resulting in nearly one million new millionaires, with the US accounting for almost half of this increase. • Why it matters: Despite the overall rise in wealth, the report highlights a deepening wealth inequality since 2020, as median wealth has declined in many countries, indicating that wealth growth is not evenly distributed. • What to watch next: Observers should monitor potential policy responses aimed at addressing wealth inequality and the economic challenges faced by middle-class and lower-income households as the global economy evolves.

**UBS Highlights Deepening Wealth Inequality Since 2020**

In its annual Global Wealth Report, Swiss bank UBS has revealed significant trends in personal wealth growth across the globe, particularly noting a sharp increase in the number of millionaires. The report indicates that in 2025, global personal wealth surged by 10.8%, a notable rise from 4.6% in 2024 and 4.2% in 2023. This growth has resulted in the creation of nearly one million new US dollar millionaires worldwide, with the United States accounting for almost half of this increase.

The UBS report highlights that over 440,000 individuals in the US alone joined the ranks of millionaires in 2025. This surge in wealth is attributed to robust financial market performance, which has been a significant driver of wealth accumulation in recent years. The report emphasizes that there are now “more millionaires than ever, everywhere,” indicating a widespread increase in wealth concentration.

However, despite the overall growth in personal wealth, UBS warns that wealth inequality has deepened since 2020. The report notes that while average wealth has increased, median wealth—a measure that provides a clearer picture of wealth distribution and reflects the financial status of the average individual—has declined in many countries. This trend underscores a growing divide between the wealthiest individuals and the broader population, suggesting that the benefits of wealth growth are not being evenly distributed.

The analysis conducted by UBS covers 56 markets, which the bank estimates represent over 92% of global wealth. The findings reveal that while wealth in US dollar terms has grown rapidly in Europe, this growth has been influenced by the depreciation of the dollar against the euro in the previous year. This disparity in wealth growth rates across different regions further illustrates the complexities of the current economic landscape.

As the report outlines, the increase in the number of millionaires and the overall rise in wealth come amid a backdrop of increasing economic challenges for many. The decline in median wealth in various countries points to the struggles faced by the middle class and lower-income households, raising concerns about social equity and economic stability.

UBS's findings serve as a critical reminder of the ongoing issues related to wealth distribution and the need for policies that address these disparities. As the global economy continues to evolve, the challenge of ensuring that wealth growth benefits a broader segment of the population remains a pressing concern for policymakers and economists alike.

In conclusion, while 2025 marks a year of significant wealth growth and an increase in millionaires, the deepening inequality highlighted by UBS calls for a reevaluation of economic strategies to foster a more equitable distribution of wealth. The report serves as a crucial resource for understanding the current state of global wealth and the implications for future economic policies.

Source: Cyprus Mail
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