For the first time since the 2008 financial crisis, global private wealth contracted in 2022, due in particular to the weakening of many currencies against the dollar, the poor performance of financial assets and inflation. Economists, however, remain optimistic for the next five years.
Over the course of 2022, total net private wealth fell by 2.4% or $11.3 trillion to $454.4 trillion, Credit Suisse and UBS wrote in their annual Global Wealth Report on Tuesday. Wealth per adult fell 3.6% to $84,718.
Other numbers went down at the same time. The wealthiest 1% in the world now own “only” 44.5% of all the world’s wealth. The number of millionaires also fell, dropping to 59 million individuals (-3.5 million).
This decline is explained by the appreciation of the dollar against many currencies, inflation and the sluggishness of financial investments, including above all the drop in share prices and many stock market indices. Non-financial investments, consisting mainly of real estate, held up much better, despite the interest rate hikes.
The loss of wealth was particularly marked in North America and Europe (-10.9 trillion dollars) and more moderate in the Asia-Pacific region (-2.1 trillion). On the other hand, the trend was positive in Latin America (+2.4 trillion), thanks to the appreciation of currencies against the dollar.
“In 2022, the United States (-5.9 trillion dollars) tops the list of countries that have lost ground, followed by Japan (-2.5 trillion), China (1.5 trillion), Canada (-1.2 trillion ) and Australia (-1,000 billion). On the other hand, the largest increases in wealth were recorded by Russia (600 billion dollars, an increase caused by the appreciation of the ruble against the dollar last year, editor’s note), Mexico (655 billion), India (675 billion) and Brazil (1,100 billion),” the report noted.
richest country in the world
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.
In terms of median wealth, i.e. the threshold of wealth exceeded by 50% of the population, it is Belgium, on the other hand, that climbs to the first step of the podium, with 249,040 dollars per adult (a drop of nearly 8,000 dollars compared than last year), ahead of Australia and Hong Kong. In other words, wealth inequality is lowest in Belgium.
Unlike average global wealth per adult, median global wealth per adult grew by 3% in 2022.
Our country thus has 536,000 millionaires in 2022, compared to 107,000 in 2000. In 2027, there should be 749,000. In terms of average wealth, Belgium finds itself in 11th place, behind the Netherlands but ahead of France, with 352,810 dollars per person (-13,940 dollars compared to 2021).
Increase in wealth in the years to come
According to economists’ projections, global wealth will increase by 38% over the next five years, reaching $629 trillion by 2027. By then, the average wealth per adult is expected to reach $110,270.
with agencies
