2023-09-20 15:42:45
National economic assets increased by 5.6% last year to reach 20,052 billion euros last year. More moderate growth than that observed a year earlier, in particular due to the decline in land prices.
After a strong increase in 2021 (+9.1%), France’s net wealth increased by 5.6% in 2022, to 20,052 billion euros, according to an INSEE study published this Wednesday. This corresponds to the difference between the value of financial and non-financial assets (58,977 billion euros) and that of the liabilities of economic agents (households, businesses and public administrations).
The slowdown in the growth of France’s net wealth is explained by a weaker “dynamic of non-financial assets (+5.2% in 2022, following +8.9%)” penalized by the start of a fall in prices in real estate and “despite the rise in construction prices”, explains the statistics institute, recalling that “during previous years, the value of built land was the primary factor in growth of total assets”.
For its part, the value of financial assets fell (-2.7%) last year due to “the fall in share prices in the first half”. While in the second half “the rise in interest rates” resulted in a drop in the value of the debt.
Household wealth stagnates
In detail, household wealth*, which represents 73.8% of national economic wealth, remained almost stable in 2022 (+0.3%, following +8.7%), at 14,791 billion euros. This stagnation reflects two opposing movements. On the one hand, non-financial household wealth continued to increase (+3.8%), reaching 10.435 billion euros. An increase, however, significantly lower than that observed a year earlier (+9.2%). The cause: a lower increase in the value of real estate (+3.5%, following +9.1%), which represents 90.8% of household non-financial assets.
At the same time, the net financial wealth of households fell by 7.1% in 2022, to stand at 4,356 billion euros, following an increase of 7.7% in 2021. “This decrease is mainly explained by the decline in assets, with liabilities increasing at the same rate as in 2021”, underlines INSEE.
Indeed, household life insurance assets decreased by 12.1% due to the fall in stock prices and the rise in interest rates. However, life insurance represents 30% of total household financial assets. “Investments in the form of shares and investment fund shares fell (-4.6%),” continues INSEE. Finally, on household liabilities, the increase in loans slowed (+4.9%, following +5.3%). These are mainly real estate loans, which reached 84 billion euros in 2022.
Significant increase in corporate assets
Unlike households, non-financial companies saw their assets grow significantly last year (+18.3%) to reach 4,002 billion euros. According to INSEE, “real estate contributed to this growth, particularly non-residential buildings and other civil engineering works”.
The assets of financial companies, on the other hand, contracted once more last year (395 billion euros, -17%). Conversely, that of public administrations increased by 474 billion euros, reaching 864 billion euros. Its highest level since 2017.
*Including individual entrepreneurs and non-profit institutions serving households
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