Wealth of the Hungarian rich is growing rapidly
In the first half of the 2020s, the number of Hungarians with billions of dollars will more than double: it will jump from 3 to 7! It is another sign of the wealth concentration that has been going on for years in the country. Those struggling with financial problems struggle a lot, while those few who have immeasurable wealth are so well-off they do not even know what to do with all the money they have.
Concentration of wealth
Private banks are doing well and the new generation is increasingly looking for professionals, the 12th Private Bankers Conference heard. The wealth of the world’s richest people has grown enormously in recent times. In addition to global figures, domestic private banking statistics also show the concentration of wealth.
While the size of the domestic private banking market has remained essentially unchanged since 2010, the wealth held in accounts has increased dramatically. While five years ago, wealthy customers held HUF 4,141 billion (EUR 10.06 billion) in the relevant private bank accounts, by the end of last year, the amount had exceeded HUF 7,000 billion (EUR 17 billion)!
As reported at the 12th Private Bankers Conference, BloChamps Capital, which analyses data in this area, estimates that assets held in accounts could exceed HUF 9,000 billion (EUR 21.86 billion) by the end of 2023.
Hungary could have 7 dollar-billionaires by 2025
The concentration is not only felt in the accounts, but also in the wealth of the rich, Index reports. While in 2005, roughly 8,000 people in Hungary had assets of more than HUF 300 million (EUR 0.73 million), and five of them crossed the HUF 30 billion (EUR 72.9 million) threshold, in 2020, 18,000 clients had assets of at least USD 1 million, of which 13,000 were in the under HUF 1 billion (EUR 2.4 million) category. By then, however, there were already 63 of our fellow citizens with assets of over HUF 30 billion, and three of them could even claim to be billionaires in dollar terms.
BloChamps expects that by 2025, the number of people with over HUF 300 million in assets will rise to over 26,000. The bulk, 20,000 people, will have assets of between HUF 300 million and HUF 1 billion. However, in the 30 billionaires’ club, the increase will be just 30 percent – the forecast is for 82 super-rich Hungarians, seven of whom could even claim to be dollar-billionaires. Their number will therefore more than double, which could also be a sign of wealth concentration.
Source: Index.hu, insiderblog.hu