Global financial wealth has grown by double digits to reach $530 trillion in 2021.
It should jump ahead by 80,000 billion more until 2026, according to a study conducted by Boston Consulting Group (BCG) published Thursday.
In Switzerland, assets increased by 5.5% compared to last year to reach 4.1 trillion dollars. By 2026, the Swiss fortune should reach 4600 billion, details the publication. With an annual growth of 3.2% to 1900 billion national fortunes would increase more strongly than cross-border fortunes.
The rest of the world is experiencing more pronounced growth according to the study. Private wealth growth rate for the first time in decades posted 10.6%, or $26 trillion, ‘driven by strong stock markets and rising demand for real assets ‘, specifies the last publication of the BCG.
This 22nd edition of the annual report on the global wealth management industry explains that despite inflation and the Russian-Ukrainian conflict, ‘wealth development is resilient with a positive growth rate.’ even ‘the strongest growth in two decades,’ said Anna Zakrzewski, global head of BCG’s Wealth Management division.
Non-traditional wealth managers currently manage up to $1 trillion in cryptocurrency-related wealth, and cryptocurrency market capitalization might grow four to five times by 2030.
‘Hong Kong will probably overtake Switzerland in 2023’
Geographically, the study reports that Asia-Pacific will maintain the highest growth rate, with asset values expected to increase by 8.4% per year by 2026. If this rate continues, the region might harbor nearly a quarter of the world’s private wealth in five years.
Wealth in the Middle East and Africa might represent the biggest overall jump in growth with a compound annual growth rate (CAGR) of 5.4% through 2026. On the other hand and over the same forecast period, the North America would see slower wealth growth with an estimated CAGR of 4.7% (9.1% over the last five years). The same is true for Western Europe with growth in its wealth slowed down from 4.5% to 4%.
The BCG study even foresees ‘the end of Swiss domination for 200 years as the domicile managing the largest amount of cross-border private wealth. Hong Kong will likely overtake Switzerland in 2023,’ the statement said.
/ATS
