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Hungarians among most indebted and least wealthiests – OECD study
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A recent OECD study found that the gap between mean net wealth and median net wealth is at least worrying. As Portfolio.hu reports, net wealth is highest in the US, while in Hungary it is among the lowest ones.
While Hungary celebrated its 20th anniversary in OECD in 2016 and just joined an OECD multilateral tax agreement, the country is not making so good scores on OECD’s recent rankings. The recent study concentrated on the wealth gap to understand economic well-being in OECD countries, with a focus on income and wealth inequality. As the report says, wealth inequality is twice the amount of income inequality. This means that the wealthiest 10 pc have control over 50 pc of net wealth. In comparison, the top 10 pc of income distribution „only” hold 24 pc of total income.
Wealth inequality was measured to be the highest in the United States and the Netherlands, while the lowest in the Slovak Republic and Japan. Interestingly, households with the lowest wealth are not necessarily those with the lowest incomes – this may be due to the high level of debt despite advantageous income.
Based on the study’s findings regarding the distribution of wealth among OECD countries, we are seriously lagging behind.
The report looked at many measures and indicators to collect supporting data: levels of median wealth, wealth inequality, the relationship between wealth and income, and characteristics of households.
Net wealth is highest in Luxembourg, the United States, the United Kingdom, and lowest in Chile and Hungary.
