The Euro Area Saw a Slight Decrease in Inequality Over Past 5 Years

Net wealth in the euro area rose 27 percent over the past five years—accompanied by a slight decrease in inequality, partly because homeowners benefited from increasing housing prices. The share of wealth held by the top 10 percent stood at 56 percent in the fourth quarter of 2023, while the bottom half held just 5 percent. By comparison, the top 10 percent on a global basis holds about three-quarters of total wealth, according to the World Inequality Lab.

These Distributional Wealth Accounts far surpass the scope of standard distribution data. They are crucial because they detail not only who owns what—from real estate to savings—but they also align these figures with the broader economic metrics of an entire country. This integration provides more timely estimates and allows for a deeper understanding of how wealth distribution interacts with overall economic health.