Wednesday, June 23, 2021

Money Goes To Money

 While many poor people became poorer, five million people became millionaires across the world in 2020 despite economic damage from the Covid-19 pandemic.

Because of recovering stock markets and soaring house prices helping to boost their wealth in 2020 more than 1% of adults worldwide were millionaires for the first time.

Total global wealth grew by 7.4%.

Wealth creation appeared to be "completely detached" from the economic woes of the pandemic, the researchers said.

Anthony Shorrocks, economist and author of the Global Wealth Report, said, "Global wealth not only held steady in the face of such turmoil but in fact rapidly increased in the second half of the year," 

Wealth differences between adults widened in 2020, and  Shorrocks said if asset price increases, such as house price rises, were removed from the analysis, "then global household wealth may well have fallen".

 "In the lower wealth bands where financial assets are less prevalent, wealth has tended to stand still, or, in many cases, regressed," he said.

Nannette Hechler-Fayd'herbe, chief investment officer at Credit Suisse, said:  "The lowering of interest rates by central banks has probably had the greatest impact. It is a major reason why share prices and house prices have flourished, and these translate directly into our valuations of household wealth."

Millions become millionaires in Covid pandemic - BBC News

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