Private wealth in Turkey in decline: Report

ISTANBUL

Total private wealth held by people living in Turkey declined 6 percent in 2017, a recent report by the New World Wealth has revealed.

“2017 was not a great year for Turkey in terms of wealth growth. Total wealth held in Turkey was down by 6 percent during 2017. Total wealth held in Istanbul was also down by a similar percentage during the year,” Andrew Amoils, the head of research at the company based in Johannesburg, told daily Hürriyet on Feb. 27.

“Total wealth held in Istanbul is $197 billion, [it is] ranked 85th worldwide... Total wealth held in Turkey as a whole is $780 billion, [Turkey] ranked 30th worldwide. Total wealth held in Ankara is $45 billion,” he added.

Ankara residents poorer

In Turkey’s main economic hub, Istanbul, the total private wealth per capita, including all assets such as property, cash, equities and business interests less liabilities of individuals, is estimated to be at $13,107. Government funds have been excluded from the figures in the report released on Feb. 10.

The total private wealth per capita held by residents of the capital Ankara, $8,264, is quite below the national average, which is $9,652.

Leading cities: New York, London and Tokyo

According to the report covering private wealth held in cities around the world, New York City, London and Tokyo are the richest ones. Total private wealth is estimated to be at $3 trillion in New York, $2.7 trillion in London and $2.5 trillion in Tokyo.

Over the last 10 years, the cities with the fastest growing rates of wealth are indicated as San Francisco, Beijing, Shanghai, Mumbai and Sydney. Mumbai, the economic hub of India, and two major Chinese cities, Shenzhen and Hangzhou, are pointed as the ones to be watched closely in the next decade.

Millionaires migrating from Turkey

About 6,000 high net-worth individuals (HNWIs), holding net assets of at least $1 million, left Turkey in 2017, according a previous report released by the same company at the end of January.

Most of them moved to Europe and the United Arab Emirates, it said.

“Turkey experienced a significant outflow of HNWIs in 2017. This is the second straight year that over 5,000 HNWIs have left the country. These outflows are very concerning as Turkey is not producing many new HNWIs to replace the ones that are leaving,” the report said.

The reasons behind the migration of millionaires from Turkey were the “government crackdown on the media deterring investment,” “loss of currency value against the U.S. dollar,” and “large outflow of HNWIs from the country.”