Examining Economic Disparity: The Top 10 European Nations with Widest Wealth Gaps

Examining Economic Disparity: The Top 10 European Nations with Widest Wealth Gaps

In the European country with the highest income  disparity, the richest 1% of the population earns   55 times more than the poorest 50%. In today’s  video, we’ll talk about economic inequality,   and we’ll examine the 10 European nations plus one  with the widest wealth gaps. This ranking includes  

Countries from both Western and Eastern Europe,  as well as from the north and south. As always, we   based this video on official sources, such as data  published by EUROSTAT. Welcome to Amazing Europe. Number 10: Portugal. Portugal is facing a problem of wealth  

Inequality, although this gap has been slightly  decreasing in recent years. According to Eurostat,   the Gini coefficient, a measure of income  inequality, in Portugal was 0.32 in 2022,   higher than the EU average of 0.296. The  COVID-19 pandemic has exacerbated the problem,  

With data showing that the number of people in  poverty in Portugal increased by 12.5% in 2020,   one of the highest increases in the Eurozone. At  the same time, the number of individuals with high   net worth has increased significantly. According  to the Portuguese tax authorities, the number of  

Taxpayers with an annual income of over 750,000  euros or a net worth of over 5 million euros has   quintupled since 2014. To give you an idea  of this inequality, in 2021 these high-income   earners contributed 18 billion euros to the state  coffers, which is about 40% of the total state  

Budget. One last important thing to say is that  there is a clear divide between the finances of   those living on the coastal strip, which is  wealthier due to the high level of tourism,   and the much poorer hinterland. Number 9: Spain. 

In Spain, there is generally a large gap  between the north and the south of the country,   with some exceptions. In some Spanish autonomous  communities, more than a tenth of the population   lives in severe poverty. The most affected regions  are Andalusia, the Canary Islands, the Region of  

Murcia and Extremadura. The autonomous cities  of Melilla and Ceuta far exceed the national   average in terms of severe poverty, with a gap of  over 14 percentage points. On the contrary, the   autonomous regions with the lowest percentage of  people in severe poverty are the Basque Country,  

Cantabria and Aragon, located some in the north  and others in the northeast of the country. One   northern region that is not doing well, however,  is Asturias, with 9.2% of its population at risk   of poverty. Overall, around 26% of Spaniards are  at risk of poverty or social exclusion. Of these,  

4.2 million people live in extreme poverty,  with less than 560 euros per month. The   prestigious website Forbes states that there are  29 billionaires in Spain, and their wealth amounts   to a total of approximately 14% of the national  GDP. In 2022, Spain’s Gini coefficient was also  

0.32 points, down from 2014, with the richest 20%  of the population earning an average of 5.63 times   more than the poorest 20%. Number 8: Serbia.  Among the former Yugoslav nations, Serbia is  the worst affected by this issue. First of all,  

Serbia has a high unemployment rate. In 2018,  Serbia had an overall employment rate of 63.1%   and an unemployment rate of 12.9%. Additionally,  few Serbs have access to higher education:   in 2018, it was 25.7%. It is striking that  university graduates in Serbia have almost  

The same unemployment rate as people who  dropped out of school after primary school,   while in Slovenia, another former Yugoslav  country, the percentages for the two categories   differ significantly. A study states that this  shows that there is no great distinction between   skilled and unskilled workers in Serbia, with  the consequence that more qualified workers  

Are hired less efficiently. However, it should  also be said that Serbia is the nation among   the former Yugoslav states that is improving the  fastest in terms of income inequality. In fact,   in 2022 the Gini coefficient was 0.32, equal to  Portugal and Spain, but in 2015 it was as high as  

0.40 points. This means that Serbia has been able  to improve by 8 points in 7 years. We truly hope   that things continue this way for them! Number 7: Romania.  Romania also has a Gini coefficient of 0.32,  tied with the nations we have seen so far, but  

It is in seventh place because the coefficient in  previous years was higher than the others. Romania   is a country of contrasts. In November 2023, the  general unemployment rate was 5.4%, one of the   lowest in Europe. But if you look at young people,  it’s a different story. Youth unemployment is  

22.9%, one of the highest in the European Union.  The north-west of the country is an exception,   with youth unemployment of only 7%, while the  south-west is the most affected. According to   various studies, the main causes seem to be low  wages and high school dropout rates. More than  

15% of young people in Romania aged 18-24 have  not completed lower secondary education. Here,   12.1% of young people aged 15-19 are neither  studying nor working, the second worst figure   in Europe. Furthermore, dropping out of school  in Romania leads to difficulties in finding work,  

Lower wages, a risk of poverty, and obviously  increases migration, with a consequent decrease in   population, as we have already seen in the video  on the 10 European countries that are emptying   the fastest. Paradoxically, Romania is one of the  fastest growing countries in the European Union  

In economic terms, but young people do not seem  to be benefiting from this growth. As we said,   Romania is a country of contrasts. Number 6: Italy.  If Romania was in second place in Europe for young  people aged 15-19 who neither study nor work,  

Italy is in first place. In fact, in Italy, 13.2%  of young people neither work nor study. In this   country, income inequality among the working-age  population grew considerably in the early 1990s,   remained high until 2015, and further increased  during the pandemic year. According to various  

Studies, one cause of this inequality is the  ever-increasing number of part-time jobs,   especially for women. Furthermore, there has  been an explosion in the number of companies   hiring employees mainly on temporary contracts,  which very rarely turn into permanent contracts   in the future. However, the greatest income  inequality in Italy is between the north and  

The south of the country. According to official  data from the Italian Ministry of Finance,   the gross annual income in northern Italy in 2021  was 30,800 euros, in the centre 29,300 euros and   in the south and islands 26,300 euros. The  region where people earn the most is Lombardy,  

With an average gross salary of almost  32,500 euros, while in Basilicata people   earn 7,500 euros less. In 2022, the Italian Gini  coefficient was 0.327 points, up from 2014.  Number 5: Albania. There is not much updated data on   Albania. Official statistics from 2018 show that  inequality is high in Albania. 40% of households  

Lack material income and 23% of the Albanian  population is at risk of falling into poverty. The   pandemic has only exacerbated these figures. In  fact, although Albania had one of the lowest rates   of economic decline in the Western Balkans, the  number of poor people increased more than anywhere  

Else during the pandemic. According to World Bank  estimates, the pandemic has generated 112,000 more   poor people in Albania. Rural areas are generally  poorer. In fact, there is a great disparity in   Albania between the various prefectures. The  richest is undoubtedly the prefecture of Tirana,  

With a GDP per capita of 135% of the national  average. It is followed by the prefectures of Fier   and Gjirokastër. The three poorest prefectures  are those of Lezhë, Elbasan and especially Kukës,   with a GDP per capita of 61% of the national  average. An interesting fact is that during the  

Period 2010-2018, productivity in the economy  increased by 7%, while the average real wage   increased by only 3%. This shows that companies  have increased productivity through technological   innovation or process optimization, but have  not necessarily shared these gains with workers  

By increasing their salaries. In 2021, the Gini  coefficient was 0.33 points, down in recent years. Number 4: United Kingdom. The UK Gini coefficient data   provided by EUROSTAT stops at 2018, and it was  0.335 points, up from previous years. Doing  

More recent research, we have seen only slight  variations in recent years. It seems that in the   UK the pandemic has exacerbated the inequalities  between rich and poor. In 2022, the incomes of the   14 million poorest people fell by 7.5% compared  to the pre-pandemic period, while the incomes of  

The richest fifth saw an increase of 7.8%. Also in  2022, the poorest fifth of society owns only 8% of   total income, while the richest fifth owns 36%.  If we look at how much the incomes of the richest  

1% of the population have grown in each European  country, it seems that the British one has grown   much more than that of other European nations. In  short, the rich are getting much richer, and the   poor are getting much poorer. The causes of this  economic inequality seem to be multiple. Various  

Studies show that one cause is technological  change. In the UK, in fact, there has been a   growing gap between people with high technological  skills and those who have not been able to keep   up. Educational attainment also plays a primary  role. In the UK, the most educated and qualified  

People tend to have much higher earnings,  unlike what we said happens in Serbia. Then   there is the whole issue of executive pay, which  has been increasing steadily in recent years.   Various studies show many other causes. Write  in the comments what you think about the topic! Number 3: Latvia. Latvia has a Gini  

Coefficient of 0.343 points. Here, the richest  20% of the population earns 6.33 times more than   the poorest 20%. Latvia is one of those nations  that has seen an economic boom in recent years,   but there is still a lot of inequality.  And it seems that this inequality is mainly  

Geographical. In fact, the metropolis of Riga  accounts for about two thirds of the country’s   economic growth. In recent years, Riga and the  surrounding area have generated up to 69% of   Latvia’s GDP. Suffice it to say that Latvia has a  population of 1.83 million, of which 850,000 live  

In the Riga metropolitan area. Non-metropolitan  areas are struggling with a number of problems,   including high unemployment and an ageing  population. The poorest region is Latgale. Here,   the average monthly household income in 2021  was €977, while in the Riga region it was almost  

Double. The percentage of people living in poverty  is a serious problem in the regions located far   from the capital. While in recent years only 5%  of the population in the Riga metropolitan area   had an income below the minimum level, this  percentage reached 10% in the periphery and  

Up to 14% in Latgale. Number 2: Lithuania.  In Lithuania, a large gap can be seen between  young and old people. According to OECD data,   9.9% of Lithuanian minors live below the poverty  line, but the percentage is much higher among  

The elderly. In Lithuania, almost 28% of those  over 65 live on an income less than 50% of the   median income. Several factors have contributed  to this. First of all, Lithuania has experienced   one of the largest emigration phenomena in Europe,  especially since it joined the European Union. As  

We have already seen in the dedicated video, in  the last 12 years Lithuania has lost almost 18%   of its population, mainly due to young people  emigrating abroad. This has brought several   disadvantages to the country. Many of the over-50s  who remained in Latvia worked in agriculture,  

But the share of people employed in agriculture  in Latvia has more than halved in the last 20   years. Older people have not been able to keep  up with the times and with the new job demands,  

Unlike the young people who have decided to stay  in the country, and this is why the economic gap   between the two age groups has widened. These are  just some of the reasons that have led Latvia to   a Gini coefficient of 0.362. In fact, in  Latvia, the richest 20% of the population  

Earns 6.39 times more than the poorest 20%. Before revealing number 1 and the final bonus,   if you found this video interesting and want more  content like this, please give us a thumbs up,   subscribe to the channel and click the bell  to not miss any updates. Thank you very much! 

Number 1: Bulgaria. Bulgaria has a Gini coefficient of 0.384,   which means that this country, along with all  the nations mentioned so far, has an economic   inequality that can be defined as moderate.  But there is one nation that fares even worse,  

And we will see it in the final bonus. The poorest  20% of the Bulgarian population earns 7.30 times   less than the richest 20%. But if we only consider  the very rich, the richest 1% receive 55 times   more income than the poorest 50%. The three most  affected categories are pensioners, the unemployed  

And women. In 2019, 34.3% of pensioners were at  risk of poverty, and this figure rises to 58.9%   for the unemployed. There are various causes of  this economic disparity. Some studies show that   one cause is a low-level education system  that does not guarantee quality education,  

Especially for low-income and marginalized  groups. This would also lead to low-skilled work,   which is more vulnerable to technological change.  Another cause could be the high dependence on   government aid, which, according to these studies,  does not create opportunities for success in the  

Labor market and instead reduces the motivation to  actively participate in the workforce. There also   seems to be a disparity between the different  districts in Bulgaria. The richest district   is Sofia, with a GDP per capita of 124% of the  EU average. The poorest district is Silistra,  

With a GDP per capita of 26% of the EU average. We could add one more nation to the 10 we   have mentioned. In fact, if we also  consider transcontinental countries,   Bulgaria would not be the nation with the  greatest economic disparity, but Turkey. Turkey  

Is considered a transcontinental country, as 3%  of its territory lies within the geographical   boundaries of the European continent. In 2021,  Turkey recorded a Gini coefficient of 0.462.   While all the other countries mentioned  so far have a moderate level of disparity,  

Turkey has a high economic inequality. Here, the  richest 20% of the population earns 8.8 times more   than the poorest 20%. The Confederation of Turkish  Trade Unions has reported that the poverty line,   i.e. the minimum amount a family of four needs  to spend to feed itself, is now higher than the  

Minimum wage. This is despite the government’s 34%  increase in the minimum wage in the second half   of 2023. One of the main causes is said to have  been years of very high inflation, with prices   rising by an average of 70%. However, the rich are  getting richer. In Istanbul, the richest 1% of the  

Population owns 29% of the income of all families  in the city, and earns 322 times more than the   poorest 1%. This income is higher than the total  income of three developed Turkish cities (Izmir,   Ankara and Bursa) and almost equal to  the total income of the Black Sea region. 

What we have written are just a few of the causes  of inequality between rich and poor in Europe.   We know that we have touched on a delicate  topic, and we hope we have done so with the   proper respect for the people involved. If you  found this video interesting, we recommend the  

One on the European countries with the highest  salaries, which you can find in the top right   corner, or other videos on our channel. Well,  that’s all for this video. See you next time!

In the European country with the highest income inequality, the richest 1% of the population earns 55 times more than the poorest 50% of the population. In today’s video titled “Examining Economic Disparity: The Top 10 European Nations with Widest Wealth Gaps,” we will discuss economic disparity and examine the 10 European nations with the widest wealth gaps. This ranking includes countries from both Western and Eastern Europe, as well as from the north and south.

For this video, we also relied on official sources, such as data published by EUROSTAT. We ranked European countries according to the Gini coefficient. The Gini coefficient is a measure of inequality in the distribution of a variable, such as income or wealth. It ranges from 0 to 1:

0 indicates perfect equality (everyone has the same share).
1 indicates maximum inequality (one person has everything, the others have nothing).
The higher the coefficient, the greater the disparity between rich and poor. We also researched a lot of information about each individual country in various studies published by specialists. Welcome to this new video by Amazing Europe.
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Creative Commons Licenses:
Map Spain: Habbit, CC BY-SA 3.0, http://creativecommons.org/licenses/by-sa/3.0/, via Wikimedia Commons

Map Albania: TUBS, CC BY-SA 3.0, https://creativecommons.org/licenses/by-sa/3.0, via Wikimedia Commons

Map Latvia: Central Statistical Bureau of Latvia, CC BY-SA 3.0. https://creativecommons.org/licenses/by-sa/3.0, via Wikimedia Commons

Map Bulgaria: https://www.needpix.com/photo/695614/

Map Turkey: Thomas Steiner, CC BY-SA 2.5, https://creativecommons.org/licenses/by-sa/2.5, via Wikimedia Commons
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00:00 Intro
00:30 Number 10
01:41 Number 9
03:04 Number 8
04:21 Number 7
05:50 Number 6
07:12 Number 5
08:42 Number 4
10:16 Number 3
11:33 Number 2
12:53 Number 1
14:38 Final Bonus: a transcontinental Country