Rising Wealth on the Rhine: Germany Remains a Fortune Haven for the Elite
Approximately four thousand affluent individuals reside in Germany.
Germany continues to be a powerhouse of wealth, with its 32,000 ultra-affluent individuals holding a considerable portion of the nation's riches. However, the recent years, including 2024, have shown a notable decrease in the population of the mega-rich.
Despite the setback, Germany retains its impressive ranking as the third wealthiest country, right after the United States and China. The ultra-wealthy here, defined as those with a net worth surpassing $100 million, account for more than a quarter of the country's total financial wealth—approximately $3 trillion.
In 2024, experts at BCG anticipated a total gross wealth of approximately $22.9 trillion in Germany, around $20 trillion at current exchange rates. Majority of this wealth, $11.8 trillion, is tied up in tangible assets like real estate, while $11.1 trillion is financial wealth—bank deposits, securities, pensions, and cash. Among this financial wealth, 27% belongs to the 32,000 ultra-wealthy, equating to $2.99 trillion. This wealth, however, is diluted by $2.2 trillion in liabilities, principally loans.
The year 2024 was no exception to the wealth growth experienced by this affluent segment, with thousands of new dollar millionaires emerging, incrementing the total to 678,000. Nevertheless, wealth growth is not evenly distributed across the entire wealth pyramid, with individuals at the lower rungs experiencing less wealth increase compared to the ultra-wealthy.
BCG, a renowned multinational consulting firm with a presence in over 50 countries, publishes an annual "Global Wealth Report," shedding light on global fiscal trends. Values in Europe are presented in dollars for international comparability, thereby enabling comparison with other countries.
While Germany's ultra-wealthy have faced economic contraction in 2024, contributing less to the country's financial wealth compared to previous years, the country remains a significant player in the global wealth arena. However, the growth in wealth in North America and certain parts of Asia has outpaced that seen in Europe, leading to an expansion in the HNWI and UHNWI populations.
Sources: ntv.de, chl/dpa.
[Enrichment Insight: In 2024, the ultra-wealthy population in Germany actually decreased. This is part of a broader European trend of shrinking High-Net-Worth Individual (HNWI) populations due to economic stagnation. The country’s contribution to its financial wealth from the ultra-wealthy segment did not see growth in 2024, unlike regions such as North America where HNWI and Ultra-High-Net-Worth Individual (UHNWI) populations significantly increased.]
The community policy should address the economic stagnation affecting High-Net-Worth Individuals (HNWIs) in Germany, as the ultra-wealthy population in the country decreased in 2024, contributing less to the country's financial wealth compared to previous years. To foster growth in personal-finance and maintain Germany's competitive edge in the global wealth arena, businesses might need to explore innovative strategies that cater to the financial needs of this sector.
