The latest World Inequality Report 2026 delivers a sobering verdict: despite decades of economic growth, the world remains profoundly unequal. The richest 10 per cent of the global population now capture 53 per cent of all income and own 75 per cent of global wealth, while the poorest half of humanity holds just 8 per cent of income and a mere 2 per cent of wealth. At the very top, inequality reaches almost surreal proportions: fewer than 60,000 individuals - the top 0.001 per cent - own three times more wealth than 4 billion people combined.

This concentration is not static; it is accelerating. Since the 1990s, billionaire wealth has grown at nearly 8 per cent per year, twice the rate of the bottom half. The report warns that these trends are fueling political fragmentation, and undermining the fiscal capacity needed for education, healthcare, and climate action.

Beyond Income: Wealth, Gender, and Climate

The report stresses that inequality is multidimensional. Gender gaps remain entrenched: women earn only 61 per cent of what men earn per working hour. When unpaid care work is included, women’s hourly earnings collapse to 32 per cent of men’s, despite working longer total hours.

Climate inequality adds another layer. The wealthiest 10 per cent are responsible for 77 per cent of emissions linked to private capital ownership, while the bottom half accounts for just 3 per cent. The richest can shield themselves from climate shocks; the poorest cannot. By 2050, the bottom 50 per cent are projected to bear 74 per cent of relative income losses from climate change.

Germany: Moderate Income Gaps, Extreme Wealth Concentration

Germany’s profile in the report is nuanced. Income inequality is described as “moderate,” with the top 10 per cent earning 37 per cent of national income and the bottom 50 per cent capturing 19 per cent. The income gap between these groups narrowed slightly over the past decade - from 21 to 20 - suggesting mild convergence.

But wealth tells a different story. The richest 10 per cent in Germany own 58 per cent of total wealth, and the top 1 per cent alone controls 28 per cent. The bottom half? Just 3.4 per cent. Average wealth per adult stands at about €247,000, but this figure masks a chasm: the bottom 50 per cent average €8,400, while the top 10 per cent hold nearly €1.45 million.

Female labor participation has inched upward - from 35.7 per cent to 36.9 per cent - but remains far from parity. In short, Germany mirrors a broader European pattern: relatively contained income inequality paired with striking wealth concentration. Income gaps are narrower than in the UK or Southern Europe, but wealth concentration is among the highest in the EU. In Scandinavia, for instance, the top 10 per cent typically hold closer to 50 per cent of wealth, while in Germany the figure approaches 60 per cent. Eastern European countries often display lower wealth inequality, though they start from much smaller asset bases.

The report also highlights structural imbalances in global finance. Each year, poorer nations transfer resources equivalent to 1 per cent of world GDP to richer countries through debt service and profit repatriation - three times the volume of development aid. Advanced economies borrow cheaply, lend profitably, and maintain what the report calls a “rentier position,” perpetuating a modern form of unequal exchange.