The total net private wealth, measured in current nominal US dollars, it declined of 11.3 trillion dollars (-2.4%), settling at USD 454.4 trillion at the end of 2022. This was revealed by the fourteenth edition of the Global Wealth Report ljointly launched by UBS and Credit Suisse which show that part of this decline is due to the appreciation of the US dollar against many other currencies. Financial assets contributed most to the decline in wealth in 2022, while non-financial assets (especially real estate) maintained a good resilience, despite the rapid increase in interest rates.
According to the report’s projections, global wealth will increase by 38% over the next five years, reaching $629 trillion by 2027. The growth of middle-income countries will be the main driver of global trends. The report estimates that wealth per adult will reach USD 110,270 in 2027 and the number of millionaires will reach 86 million, while the number of ultra-high-net-worth individuals (UHNWI) will likely rise to 372,000 individuals.
Regionally, the report shows that global wealth loss has been heavily concentrated in wealthier regions such as the Nord America e l’Europa, which together they lost USD 10.9 trillion. Increased total wealth by $2.4 trillion in America Latina thanks to an average appreciation of the currency of 6% against the US dollar. In terms of wealth per adult, Switzerland continues to top the list, followed by the United States.
“As the world‘s largest global wealth manager, we are uniquely positioned to draw on the knowledge and insights of our entire wealth management business. Il Global Wealth Report this year’s edition reveals valuable insights into the state of our economy and society, as well as the changing meaning and potential of prosperity. An extensive analysis of household wealth covering an estimated 5.4 billion adults worldwide and the entire wealth spectrum. It also provides a glimpse into future trends, helping us set expectations, understand the ever-changing nature of wealth creation, and better understand its power to benefit our society,” he said. Iqbal Khan, presidente UBS Global Wealth Management.
“Much of the decline in wealth in 2022 was driven by high inflation and the appreciation of the US dollar against many other currencies. If exchange rates had been held constant at 2021, total wealth would have increased by 3.4% and that per adult by 2.2% in 2022. However, this is the slowest increase in wealth at constant exchange rates since 2008. Holding exchange rates constant, but taking into account the effects of inflation, results in a real wealth loss of -2.6% in 2022. Similarly, financial assets contributed most to the decline in wealth, while non-financial assets (especially real estate) maintained some resilience, despite the rapid rise in interest rates. However, the relative contribution of financial and non-financial assets could reverse in 2023 if home prices decline in response to rising interest rates,” he commented. Anthony Shorrocks, economist and author of the report.
Nannette Hechler-Fayd’herbe, Chief Investment Officer of the EMEA region e Global Head of Economics & Research, Credit Suisse, he added: “The evolution of wealth has proven resilient during the COVID-19 era and grew at a record pace in 2021, but inflation, rising interest rates and currency depreciation have caused a reversal in 2022. Over the next five years, we expect global wealth to grow 38% to $629 trillion by 2027, while wealth per adult is projected to grow 30% to $110,270 . We also expect that the number of millionaires will grow significantly over the next five years to 86 million, while the number of UHNWIs will rise to 372,000”. (Ticker)