Australia is still the richest nation . . . But don’t celebrate just yet

Australia remains the richest country in the world according to the annual wealth report from Credit Suisse released this week. The ascendancy Australia gained during the global financial crisis (GFC) has been easily maintained, although fortunes have varied widely elsewhere. Quite the opposite according to Tony and Joe.

The median wealth of Aussie adults increased from US$219,500 last year to $225,300. Belgium is second, well back on $173,000. Then follow Italy, France, the UK, Switzerland, Japan and Singapore.

Australia has not always been the richest nation. It topped the table during the global financial crisis, thus bolstering the view of Joseph Stiglitz, Tim Harcourt and others that Australia handled the GFC particularly well.

In 2008, Australia ranked sixth in the world on median wealth behind Luxembourg, Iceland, Belgium, Italy and France. Through 2009, as the global financial crisis devastated most developed economies, Australia rose to second behind clear leader Luxembourg, with Belgium a close third. The others fell well back.

By 2010, Australia was within a fraction of a percentage point of Luxembourg, which it overtook to lead the world in 2011. Through 2012 Australia moved further ahead, leading Luxembourg, Japan, Italy, Belgium and the UK. By 2013 Australia’s median wealth had rocketed to US$219,500 per adult, leaving Luxembourg, France, Italy, the UK and Norway well behind.

Over the 14 years since the turn of the century, Credit Suisse calculates household wealth in Australia grew at an average annual rate of 11%, despite the GFC.