Italy has struggled since the financial crisis of 2008, creating the worst financial situation in the country since World War 2 and causing many Italian millionaires to look elsewhere for financial safety. According to a new report from WealthInsight, 41.5% of Italian wealth is reported to be held outside the country, much higher than the worldwide average of 20-30%.
With public debt increasing since 2007 to 126% of GDP by 2012, Italy has struggled to remain dominant within Europe and keep its balance sheet at a comfortable level. The biggest sector to grow within 2012 was the manufacturing sector which saw an increase of only 7%, while the financial sector shrunk by 18%. Strict austerity measures and increases in tax across the country were some of the key factors in these low percentages.
Multimillionaires account for 1.5% of the total wealthy population in Italy, which is over double the global average of 0.7%. WealthInsight expects the number of multimillionaires to increase by 10%, to reach 3,992 individuals in 2017, up from 3,503 in 2012. At the same time their wealth is projected to increase by 16% to reach US$495 billion by 2017.
Italian Multimillionaires 2008-2017
"These figures show a harsh reality of where money is situated within Italy, with all the capital being possessed by a handful of people. This has created a major imbalance of wealth across the country. However, by 2017 the population of HNWI’s in Italy is expected to increase by 10%. This could be due to HNWI’s in the Far East investing in Western heritage, for example the fashion industry, creating more opportunities for people to invest in the market", says WealthInsight Analyst, Tom Carlisle.
"The strict measures that have been agreed by the Italian government and the European Union has stifled Italy of creating new HNWIs, while the ones they have continue to take their money and invest it elsewhere", says Carlisle.