Pandemic Cannot Stop Soaring Asset Prices: Global Household Wealth Raised Last Year

Pandemic Cannot Stop Soaring Asset Prices: Global Household Wealth Raised Last Year

The number of millionaires worldwide increased by 5.2 million last year, as global household wealth continued to grow.

Credit Suisse’s latest Global Wealth Report found wealth per adult rose 6% last year to $ 79,952 (£ 57,598).

Rising house prices and rebounding stock markets helped push the number of millionaires from 5.2 million to 56.1 million last year.

Between January and March last year, $ 17.5 billion (£ 12.6 billion) or 4.4% was lost in total global household wealth, but that trend had largely reversed by the end June.

Total global household wealth rose 7.4% from $ 28.7 billion (£ 20.7 billion) to $ 418.3 billion (£ 301.3 billion) at the end of the year.

Anthony Shorrocks, economist and author of the report, said: “Global wealth has not only remained stable in the face of such turmoil, but has actually grown rapidly in the second half of the year.

“Indeed, wealth creation in 2020 appears to have been completely detached from the economic woes resulting from COVID-19.

“If asset price increases are put aside, then global household wealth may well have declined. “

Around the world in 2020:

• Total household wealth in North America increased by $ 12.4 billion (£ 8.9 billion)

• Europe grew by $ 9.2 billion (£ 6.6 billion)

• China grew by $ 4.2 billion (£ 3 billion)

• Asia-Pacific grew by $ 4.7m (£ 3.4bn)

• The wealth of Indian households fell by 4.4%

• Household wealth in Latin America fell by 11.4%

Nannette Hechler-Fayd’herbe, Director of Investments for International Wealth Management and Global Head of Economics and Research at Credit Suisse, said: “It is undeniable that governments and central banks have taken steps to organizing massive income transfer programs so the companies hardest hit by the pandemic and lowering interest rates, managed to avert a large-scale global crisis. “

She added: “The cut in interest rates by central banks has probably had the biggest impact.

“This is one of the main reasons that stock and house prices have thrived, and these translate directly into our assessments of household wealth. “

Also in the report:

• Homeowners and those with large equity portfolios have been most successful, especially men, older middle-aged and already wealthy people.

• Women workers suffered the most financially, in part because they make up the majority of people working in sectors such as retail and hospitality, which have been hit hard by government blockages.

• Global wealth is expected to increase by more than a third – 39% – over the next five years to reach $ 583 billion (£ 420 billion) by 2025

• Wealth per adult will increase by 31% to $ 100,000 (72,009) within five years


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