The Irish are the wealthiest people in Europe and the second richest in the world, thanks to exceptional gains in property values and aggressive savings practices, a banking report released today says.
The Bank of Ireland's annual Wealth of the Nation report estimates that the number of millionaires
in Ireland has increased from 30,000 to 33,000 in the past 12 months, an increase of 10 per cent, according to a report in The Australian newspaper.
Bank of Ireland Private Banking's definition of a millionaire is the sum of total assets excluding principal private residence.
Of those, it estimates that there are approximately 330 individuals with a net worth in excess of 30 million euro, a further 3,000 with a net worth of between 5 million euro and 30 million euro, with the remaining having a net worth of between 1 million euro and 5 million euro.
The report said the average individual net wealth of Irish people rose 19 per cent to 196,000 euro ($340,000) in 2006.
In terms of wealth per capita, Ireland remained ahead of the UK, the US, Italy, France, Germany and Canada but lagged behind Japan.
The report said the past 13 years of rapid economic growth had been of greatest benefit to Ireland's wealthiest people.
The report's author, Pat O'Sullivan, senior economist at the bank's Private Banking unit, said a 20 per cent growth in the value of residential property underpinned last year's surge.
While household debt rose 20 per cent to 161 billion euro ($290,000), this was more than offset by a 15 per cent gain in cash savings, a 26 per cent gain in privately held stocks and an 11 per cent gain in the value of pensions.
Mr O'Sullivan said the Irish were saving about 14 per cent of their disposable income, the highest rate in Europe with Germans coming second on 10 per cent.
By comparison, the British saved just five per cent and Americans just one per cent.
Link: The Wealth of the Nation report from the Bank of Ireland.
