The Credit Suisse survey of global wealth indicates a jump of 10% to 463.6 trillion dollars, mainly thanks to the United States and China.
Global wealth has increased sharply in 2021, particularly in North America and China, thanks to the positive evolution of stock markets and the economic support measures put in place by central banks. Soaring inflation, rising interest rates and falling stock markets could weigh on this trend in 2022.
Global wealth stood at 463,600 billion dollars (447,094.9 billion francs), an annual increase of 9.8% at the current exchange rate. Excluding exchange rate variations, the increase was 12.7%, “the highest annual growth rate ever recorded”, Credit Suisse said on Tuesday when publishing the 13th Global Wealth Report. .
Wealth per adult at the global level for its part rose 8.4% to 87,489 dollars and 11.3% excluding the exchange rate effect. In Switzerland, assets per adult are 696,000 dollars on average (+3.7%), the highest level in the world.
However, when considering the median wealth per adult, Switzerland falls to 6th place with 168,080 dollars, an improvement of around 14,000 over one year. “Wealth per adult is high in Switzerland due in particular to the funds allocated to pensions”, explained Nanette Hechler-Fayd’herbe, head of investment for the Europe Middle East and Africa region, on the sidelines of the press conference.
“Analysis of average wealth within countries and across the world shows that global wealth inequality has declined this century, due to accelerating growth in emerging markets,” argues economist Anthony Shorrocks, author of the report.
The study further highlights that the wealth share of the world’s top 1% increased for the second consecutive year to 45.6% in 2021 from 43.9% in 2019. The dollar millionaires club hosted 5.2 million additional members (+9%), bringing their number to 62.5 million people worldwide.
Less wealthy in Switzerland
As for very wealthy people (UHNWI for “ultra high-net-worth individual”), their number jumped by 21%, particularly in the United States and China. “Relatively few countries have seen a decline in the number of very wealthy people,” notes Credit Suisse.
Switzerland (minus 120), Hong Kong (minus 130), Turkey (minus 330) and the United Kingdom (minus 1130) saw the steepest declines.
All regions of the world have seen an improvement in the wealth of their inhabitants, but North America and China have particularly stood out. The first region is responsible for half of the increase and China for a quarter. Africa, Europe, India and Latin America together accounted for only 11.1% of growth. “This figure reflects widespread depreciation against the US dollar in these regions,” the statement from the two-veiled bank noted.
Regarding women’s wealth, Credit Suisse estimates that of the 26 countries that represent 59% of the world’s adult population, 15 countries including China, India and Germany have seen a decline in the wealth of women. between 2020 and 2021.
Along with wealth, household debt rose 4.4% worldwide.
The positive evolution of the stock markets in 2021 largely explains the strong growth in global wealth. Moreover, fluctuations in exchange rates are often the cause of significant gains and losses in wealth valued in US dollars, note the authors of the study.
Slowdown in 2022/2023
“While some reversal of windfall wealth gains from 2021 is likely in 2022/2023, as several countries face slowing growth or even recession, our five-year outlook projects that wealth will continue to grow,” said Nanette Hechler-Fayd’herbe.
Global inflation and the war in Ukraine could weigh on real wealth creation over the next few years, the study warns. However, global dollar wealth is expected to plummet by 36% by 2026, driven by momentum in low- and middle-income countries.
Assets per adult should increase by 28% by 2026 and cross the threshold of 100,000 dollars in 2024. The number of millionaires should increase to 87 million and those of the very wealthy register at 385,000.