Ireland number two in wealthy nations league

Ireland is the second-wealthiest country in the world after Japan, according to a report from Bank of Ireland.

Property ownership is the key factor underpinning our wealth, the vast majority of which was created in the last 10 years.

The research by Bank of Ireland Private Banking shows that, in a survey of the top eight leading OECD nations, Ireland is ranked the second wealthiest, behind Japan and ahead of the UK, US, Italy, France, Germany and Canada, showing an average wealth per head of nearly €150,000.

According to the report, there are about 30,000 millionaires in Ireland. More than 300 people are worth in excess of €30m, the report estimates, with a further 2,700 possessing a net worth of between €5m and €30m, with the remaining having a net worth of between €1m to €5m.

BoI private banking MD Mark Cunningham said: “A key defining characteristic of our wealth is that it is first generational by nature, with the vast bulk of our wealth having been created in the past 10 years.

"The report highlights that much of this wealth has been created through gains in property investment and through a willingness to borrow to invest further. It has been entrepreneurial and more risk-orientated than many other developed countries where inheritance features more prominently.

"The current allocation of Irish wealth to equities and cash, by contrast, is less than any of the other countries in the report. However, we predict that this will change as property price increases move back to more realistic levels and an ageing population may act as catalysts to create growing interest in diversification into other assets, primarily investment and pension funds."

Net wealth has grown by 350% in 10 years, according to the report. Net worth is forecast to reach €1.2 trillion by 2015.