Median net worth of Taiwanese: NT$3.57 million
According to a UBS report, nearly 790,000 people in Taiwan are worth more than US$1 million (approximately NT$32.5 million) in 2023, while the average wealth of the people is approximately US$302,000 (approximately NT$9.8 million), and in 56 Ranked 16th among other countries; Taiwan’s median wealth is US$110,000 (approximately NT$3.57 million), also ranked 16th.
The report also assesses the increase or decrease in the number of "dollar millionaires" in various countries over the past five years. It is worth noting that the United Kingdom and the Netherlands have become the only countries to have decreased. The number of dollar millionaires in the UK will fall by 17% by 2028, from 3.06 million in 2023 to 2.54 million. The Netherlands saw a 4% decrease from 1.23 million to nearly 1.18 million.
Source: Digital Age
Source: Digital Age
Wealth is excessively concentrated in the technology industry, and the gap between rich and poor is widening
According to Business Insider, although UBS expects the number of millionaires in Taiwan to increase significantly, it is unlikely that most of the 23 million people will benefit from the AI boom.
UBS data also shows that wealth inequality in Taiwan expanded by 10.5% between 2008 and 2023. For comparison, the median net worth of Taiwanese adults in 2023 is US$110,000, while the average net worth is nearly three times that, at over US$300,000. This suggests that wealth is concentrated in the hands of a few at the top of the pyramid, causing average wealth figures to be pushed up.
"Business Insider" also pointed out that Taiwan's official data also confirms this trend. In the past three decades, the wealth gap between the top 20% and the bottom 20% of household income has quadrupled. Taiwan’s Gini coefficient, a measure of wealth inequality, also rose between 1991 and 2021.
Source: UBSUBS calculates the Gini coefficient, showing that wealth inequality in Taiwan has expanded by 10.5%.
The technology industry is booming, but Taiwan’s manufacturing industry is being dragged down by China’s economy
The report also pointed out that Taiwan’s technology industry has performed well, but non-technology-related industries have lagged behind. TSMC’s performance in the AI wave is particularly outstanding, driving the entire hardware-centered technology ecosystem and becoming the backbone of Taiwan’s economy. But as China's economy slows, the recovery of Taiwan's non-tech traditional manufacturing industry is expected to continue to be a drag on the economy.
Ma Tieying, senior economist at Singapore's DBS Bank, said in a report on Wednesday that global demand for high-performance chips is expected to continue to drive Taiwan's economic growth. However, the impact of China's economic slowdown on about one-third of Taiwan's exports will make the recovery of non-tech industries challenging.
This article is reprinted with permission from: "Digital Age"