World Will Get More Millionaires After 2022’s Wealth Destruction

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Even though increasing rates and Russia’s war in Ukraine are lowering asset classes and personal fortunes this year, the number of millionaires worldwide will increase by 40% over the next five years.

Emerging economies

According to the Global Wealth Report 2022 published on Tuesday by Credit Suisse Group AG, there will be more than 87.5 million people worldwide who have at least $1 million in wealth by 2026, up from 62.5 million in 2021. According to projections, the number will increase more quickly in emerging economies, with China’s population of millionaires nearly doubling.

Millionaires Pop

Over the next five years, the number of millionaires will increase, doubling in China.

Despite the fact that the world’s 500 richest people collectively lost $1.4 trillion in wealth in the first half of the year, Credit Suisse predicts a quick rebound, particularly for developing economies. Even while its economy is beginning to show symptoms of strain due to Covid lockdowns and crackdowns in areas like IT and real estate, the Swiss bank expects China to continue accumulating enormous amounts of wealth.

“Despite the inflation and Russia-Ukraine war setbacks, we believe that total global wealth will continue to grow,” the report said. “We expect household wealth in China to continue to catch up with the United States, advancing the equivalent of 14 US years between 2021 and 2026.”

Private wealth is expected to increase by 36% to $169 trillion by 2026, according to Credit Suisse, with wealth per adult expected to increase by 28% globally and reach $100,000 in 2024. There will be 385,000 people who are ultra-high net worth, defined as having more than $50 million.

The Covid-19 pandemic had a devastating impact on developing markets, and income growth stalled. However, they picked up speed last year, and Credit Suisse anticipates that in the following five years, they will close the gap with the developed world. Compared to a 4.2% increase in high-income countries, fortunes will increase by 10% yearly in emerging economies.

Zooming In

In some locations, the number of millionaires will double.

Global wealth increased by 9.8% to $463.6 trillion in 2021 from 2020, registering the largest rise since the century’s commencement. The richest 10% of persons controlled 82% of the world’s wealth, while the top 1% owned 46% of all household assets. More than 140,000 ultra-high-net-worth individuals were found in the US, followed by 32,710 in China.

 

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Source: Bloomberg

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