The wealth inequality in the eurozone is continuing to widen on the back of rapid rises in house prices in Germany while values in southern European countries lag behind, fresh research reveals.
Wealth in Germany and Austria rose by more than 7% at the end of 2015 compared to a year earlier, which was almost double the growth rate of Italy and Spain, while Greeks saw their wealth drop by more than 4%, according to the study by an arm of German fund manager Flossbach von Storch which looked at various items including property, stocks, art and expensive wine.
The research found that property prices, which, for instance, rose by more than 6% in Germany, are the biggest driver of wealth.
But while house prices in Germany continue to rise, property markets in southern countries remain subdued.
“Until 2006 when the bubble burst, countries in the south were really taking off. Now they are in a Japan-like situation,” said Thomas Mayer, founder of the research institute that carried out the study.
“Countries in the north had not had such a strong inflation and came out of it better,” he added.