The financial well-being of European citizens fluctuates annually, but the full picture becomes clear only when inflation is considered. According to the 2025 UBS Global Wealth Report, the median wealth per adult increased in the majority of European countries between 2023 and 2024. Median wealth is considered a more reliable indicator of wealth because it is not distorted by the fortunes of billionaires and large property owners.
Hungary recorded the largest real growth in median wealth (+18.6%), followed by Lithuania, Sweden, Italy, and Latvia, all of which saw growth of more than 15%. Cyprus saw an impressive 14.2% increase, and Greece saw an increase of 8.9%.
Cyprus is steadily increasing its wealth: +43.9% in five years.
Over the past five years, Cyprus has become the European record holder in terms of real wealth growth per adult citizen. +43.9%. This figure is significantly higher than that of neighboring Greece (+5.3%) and comparable to that of the US, where the increase was 45.8%. Steady growth in real estate prices, investment activity, the digitization of the service sector, and stable interest from foreign residents made this result possible.
When the "average" gets richer, but the "average" does not
Interestingly, some countries have experienced opposite trends. For example, despite an increase in median wealth, the average indicator in Cyprus fell by 24.9%. This indicates a leveling of wealth: The rich are getting richer more slowly while the middle class's incomes are growing. This dynamic is also characteristic of Switzerland, Italy, and the UK.
Turkey was the only European country where wealth declined sharply in both average and median terms. The decline was 20.9%. This was due to rapid credit growth, artificially low interest rates, and currency instability between 2020 and 2023. In essence, this was an asset revaluation caused by "cheap" money. Once policy normalized, the value of real estate, stocks, and other assets declined sharply.
Many developed economies, including Austria, the Netherlands, and Italy, have experienced a decline in median wealth due to rising prices and an aging population. High inflation erodes the value of savings accounts and cash.
What does this mean for Cyprus and Europe?
Cyprus's growth in median wealth points to a gradual recovery of the middle class and strengthening of household financial stability. However, the decline in average wealth indicates that stratification is decreasing, yet vulnerability remains for individuals with high credit risks.
In the long term, high inflation, demographic changes, and access to credit will remain the main challenges for Europe. It is crucial for countries to strike a balance between stimulating growth and managing household debt.