Credit Suisse: Global wealth 27% higher than a decade ago

Ten years from the onset of the global financial crisis, global wealth has grown by 27%, said Credit Suisse Research Institute which recently published the 2017 Global Wealth Report.

Total global wealth rose at a rate of 6.4% in the 12 months to mid-2017—the fastest pace since 2012—and reached USD 280 trillion, a gain of US$16.7 trillion, according to the report.

This reflected widespread gains in equity markets matched by similar rises in non-financial assets, which moved above the pre-crisis year 2007’s level for the first time this year, the institute observed. Wealth growth also outpaced population growth, so that global mean wealth per adult grew by 4.9% and reached a new record high of US$56,540 per adult.

Switzerland tops wealth-per-adult

While Switzerland continued to lead in the ranking wealth-per-adult which by more than 40% during the said period, the US continues its unbroken spell of gains since the financial crisis a and has added US$8.5 trillion to the stock of global wealth, which is half of the wealth generated globally over the 12 months to mid-2017.

Other key findings:

  • Comparing wealth gains across countries, the US was restored to its usual first place, with a gain five times the rise recorded by China (US$ 1.7 trillion) in second place.
  • Stability in Europe enabled wealth growth of 6.4% across the continent. Four Eurozone countries (Germany, France, Italy, Spain) made it to the top ten countries with the biggest gains in absolute terms.
  • The Eurozone’s total wealth of US$ 53 trillion in 2017 is comparable to the total wealth of the US at the end of the 1990s.
  • The wealth impacts of the global financial crisis and other issues facing the Millennials are shown, for example, by the fact that, according to the latest data for the US, the average wealth of those aged 30-39 (USD 72,400) in 2017 was 46% below wealth at the same age of those who were 40-49 (USD 134,800) in 2017.
  • Since 2000, 23.9 million "new millionaires" have been added to the total, of whom 2.7 million – 12% of the total additions – originated from emerging economies, compared with a heavy concentration—98%--in high income economies in 2000.
  • Since 2000, the number of millionaires globally has increased by 170%, while the number of ultra-high net worth individuals (UHNWI) has risen five-fold, making them by far the fastest-growing group of wealth holders.
  • Emerging economies accounted for 6% of the UHNWI segment in 2000, but have claimed 22% of the growth in UHNWIs (24,500 adults) since then. China alone added an estimated 17,700 adults – 15% of the new UHNWIs in the world.

Wealth outlook for the next five years

According to the report, global wealth should continue to grow at a similar pace to the last half a decade (3.9% expected and 3.8% recorded over last five years), albeit at a slower rate than the previously estimated 5.4%. Based on this updated forecast, global wealth is anticipated to reach USD 341 trillion by 2022.

 

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