2023-08-15 12:31:12
August 15, 2023 Today at 2:29 PM
Growth in global wealth will be driven primarily by the development of emerging markets, reaching $629 trillion in five years.
According to a joint study published by Credit Suisse and UBS, global wealth, measured in terms of personal assetsranging from real estate to equities, should increase by 38% by 2027mainly thanks to the growth of emerging markets.
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The study, which assesses the financial assets of 5.4 billion adults in 200 markets, predicts that global wealth will reach $629 trillion over the next five years.
Russia, Mexico, India and Brazil had the largest increases in wealth last year.
A decline last year
This encouraging outlook comes despite the decline recorded in 2022, where the global net private wealth recorded its first decline (-2.4%) since the global financial crisis of 2008.
This decline in 2022 mainly affected more prosperous regions such as North America and Europe(-10.9 trillion dollars) and is partly explained by the strength of the US dollar.
The largest losses in the prior year were in financial assets, while non-financial assets such as real estate showed more resilience. On an individual basis, this means that adult net worth has decreased on average by $3,198 at the end of the year.
30%
The report anticipates a 30% increase in wealth in emerging economies, including BRICS countries, by 2027.
Belgium first for median wealth
It is on the contrary in Russia, Mexico, India and Brazil that we recorded the largest increases in wealth last year. If the loss of wealth was moderate in the Asia-Pacific region (-2,100 billion), the evolution was on the other hand positive in Latin America (+2.4 trillion)thanks to the appreciation of currencies once morest the dollar.
Good news here: “world median wealth (the threshold of wealth that exceeds 50% of the population, editor’s note), a potentially more significant indicator of the situation of the typical person, has in fact increased by 3% in 2022, in contrast to the 3.6% decline in wealth per adult“, says the report. Median wealth has increased fivefold this century, largely due to the rapid growth of wealth in China.
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Following this trend, the report anticipates a 30% increase in wealth in emerging economies, including BRICS countries, by 2027, which would help to further reduce global wealth inequality.
In terms of this median wealth, it is Belgium which sits on the first step of the podiumwith 249,040 dollars per adult, ahead of Australia and Hong Kong.
In terms of average wealth per adult, Switzerland remains at the top of the world ranking, with 685,230 dollars, or 13,450 less than in 2021 (-1.9%), ahead of the United States and Hong Kong.
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