Credit Suisse and UBS Global Wealth Report

August 18, 2023

For the first time since the 2008 financial crisis, global household wealth has experienced a decline due to rising interest rates and persistent inflation. However, amidst the challenges, the situation offers a glimmer of hope.

The annual Credit Suisse and UBS global wealth report reveals that global personal wealth dipped by 2.4% to $454.4 trillion, primarily due to losses in financial markets. Yet, global median wealth, a more telling indicator of typical progress, increased by 3% in 2022. While wealth exhaustion led to a reduction in the number of millionaires, there are four times as many dollar millionaires now compared to the start of the century. Challenges of inflation and currency depreciation impacted global wealth, with the United States, China, and the United Kingdom experiencing notable shifts.

What caused the decline in global household wealth, and how does it affect different segments of society?

Global household wealth declined by 2.4% due to increased interest rates and inflation. Losses in stock and bond markets disproportionately affected wealthier individuals, while global median wealth, which tracks the progress of the average person, increased by 3%.

How did losses in financial markets contribute to the decline in global household wealth?

Losses in stock and bond markets significantly impacted global wealth, leading to a decrease in overall personal wealth. This effect was particularly pronounced among more affluent individuals.

Despite the decline, what positive trend did the global median wealth exhibit?

Global median wealth, which indicates the progress of an average individual, actually increased by 3% in 2022. This suggests a certain level of resilience and progress for the typical person, despite the challenges faced by wealthier segments of society.

How did the number of millionaires change globally, and what were the factors driving this change?

The number of millionaires worldwide decreased from 62.9 million to 59.4 million in 2022, largely due to wealth exhaustion among the wealthier individuals. Factors such as high inflation and currency depreciation contributed to these changes.

Which countries experienced notable shifts in the number of millionaires?

The United States saw a decline of 1.8 million millionaires, while China witnessed a reduction of 6.2 million millionaires. The United Kingdom, Japan, and Australia also experienced changes in the number of millionaires.

How is the ongoing economic alteration and the fourth industrial revolution affecting global wealth trends?

According to UBS’s chief economist, Paul Donovan, the global economy is undergoing significant transformation due to the fourth industrial revolution. Structural upheavals from technological advancements challenge both economic and social relationships, leading to shifts in wealth distribution and economic patterns.

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