The Gini coefficient, also known as the Gini index, was developed by Italian statistician Corrado Gini and measures the inequality in the distribution of income and wealth. This index can be applied as a comparative measure across all economic entities, countries, continents, or households. A value of zero indicates complete equality in income distribution, while a value of 100 means that one individual possesses all the wealth, leaving everyone else with nothing. Economic and resulting social equality is a dream for many politicians, while social organizations often advocate for a more realistic goal: reducing inequality as much as possible. Naturally, this raises the question of how wealth is distributed in Germany and how the country compares to other European nations.
Germany – The Mediocre Performer in Statistical Analyses
Anyone following our analyses will have noticed that Germany frequently finds itself in the middle range across various metrics. Referring to this as “average” would be flattering; “mediocre” is a more accurate description. This holds true for the Gini index as well.
A look at the data reveals that Germany is a textbook example of mediocrity. Wealth concentration among a few individuals is not as pronounced as in Bulgaria but is far from being as evenly distributed as in Slovakia. On a global scale, South Africa has the highest inequality with a Gini index of 64, followed by Namibia at 58. Slovakia leads globally—not just within the EU—in terms of equality (source: Statista).
A coefficient of zero would imply that a socialist utopia had been achieved. Among currently existing socialist republics, Vietnam performs best with 35 points. In contrast, Mao Zedong would likely be dismayed by China’s results: its Gini index has remained stable between 46.2 and 47.3 over the past decade—already leaning toward unsocialist levels (source: Statista). The same applies to Cuba.
Why Is Inequality So High in Bulgaria?
Bulgaria’s Gini coefficient indicates that a small portion of the population owns a significant share of the country’s wealth. With approximately seven million inhabitants in 2019, Bulgaria had 916 millionaires holding assets worth €1.22 billion. The total gross financial assets of Bulgaria’s population amounted to €123 billion (source: Bulgarian National Radio). In concrete terms, 0.01% of the population holds roughly 1% of the wealth.
In comparison, Slovakia had only 5.423 million inhabitants in 2023 but an estimated 30,000 to 40,000 millionaires (exact figures are unavailable) (source: Slovak Spectator).
What Lies Ahead for Socioeconomic Inequality?
A long-term comparison within the European Union shows remarkably stable Gini index values. This can be interpreted either positively or negatively. Since 2015, fluctuations among individual countries have been limited to a maximum of one percentage point. Outside the EU, however, there is more movement: Serbia has significantly improved its Gini index from 40 to 32, while Turkey has seen an increase from 41.9 to 44.2 (source: Eurostat).
For Germany, issues like pensions and old-age poverty are expected to influence its Gini coefficient in the medium term unless government interventions provide solutions. According to Destatis, about 3.5 million people over the age of 65 are classified as poor—19.6% of retirees—marking an increase of 1.2% compared to the previous year (300,000 additional cases) (source: MDR).
It is likely that Germany will slip further down rather than close the gap with Slovakia.
