Wealth inequality is in steady decline, new Central Bank figures show

The level of wealth inequality is continuing to reduce in Ireland, a new report from the Central Bank shows.

The Gini coefficient, the most widely used measure of inequality, now stands at 63.3. For the eurozone as a whole, it is 72.4. 

The index calculates how much the distribution of wealth deviates from complete equality, which would be 0, as everyone would earn the same.

The Central Bank says in its quarterly report on household wealth that the Gini coefficient for Ireland “has decreased significantly, by -13.8 points”, since the statistical series started. This indicates “a notable reduction in the level of wealth inequality in the country”.

The report shows that the net wealth of Irish households stood at €1.3tn at the end of last year, up €40.5bn on the previous quarter.

The richest 10pc of households owned just under half the total wealth in the country, at 47pc. The total net wealth of households in the poorest half of the distribution was up by almost 4pc, and stood at 9.4pc of the national total.

For all household groups, the value of their homes is the main component of their wealth.

The reduction in debt among poorer households, and the increased value of their homes, which represents a bigger percentage of their wealth, is why they are better off overall. This is also why net wealth inequality is declining.

“Housing wealth accounts for 67.3pc of total net wealth and 60.4pc of the total assets of Irish households,” the report says.

Financial assets were worth €609bn, and were mainly composed of currency and deposits (€220.3bn) and insurance and pension entitlements (€281.5bn).

Households’ total liabilities, mainly consisting of long-term loans, totalled €157.2bn. This was down €0.8bn from the end of the previous quarter, showing a steady deleveraging.

Better-off individuals have more diversified portfolios. Debt securities, shares, and life insurance all feature prominently, accounting for almost 20pc of their assets. Wealthier households also have less debt.

Poorer households hold most of their financial wealth as deposits, which represent 19pc of their assets.

Meanwhile, volatility from the multinational sector is being blamed for a sharp drop in Irish GDP in the first quarter of the year, as shown by just-published national accounts. The 12pc fall was due to a decrease in pharmaceutical exports compared to last year, which was prompted by US president Donald Trump’s tariffs.

Conall Mac Coille, chief economist with Bank of Ireland, pointed out that the domestic economy continued to perform well in the first quarter.

“Consumer spending saw a healthy 0.6pc rise, up 2.6pc year-on-year. Public expenditure continued to contribute to demand, up 3.7pc,” he said.

“Home-building and the expansion of the construction sector helped to drive a 9.4pc rise in investment. Overall, modified domestic demand saw a robust 0.6pc rise in Q1, up 4.3pc on the year. This is still a faster pace than the 2.7pc growth we had forecast for calendar year 2026.”

Dermot O’Leary, chief economist with Goodbody, noted that the accounts show a decline of 1.6pc in wages, with the main reason being ICT.

“This adds to a growing evidence of the large changes occurring in this sector currently,” he said. “From an aggregate perspective, Irish household balance sheets are in a good position, but there are near term spending headwinds.” 

Source: John Burns, Irish Independent, 4th of June 2026.