Wednesday, September 21, 2022

The Rich Get Richer - Again

A huge increase in wealth of the richest 0.00004% of the world’s adult population comes as billions of low- and middle-income people – many of whom saw their savings wiped out during the pandemic – struggle to cope with soaring food and energy prices.

The ranks of the global “ultra high net worth” (UHNW) individuals swelled by 46,000 last year to a record 218,200 as the world’s richest people benefited from “almost an explosion of wealth” during the recovery from the pandemic.

The number of UHNW people – those with assets of more than $50m (£43.7m) – jumped in 2021 as the super-rich benefited from soaring house prices and booming stock markets, according to a report by investment bank Credit Suisse. The number of people in the UHNW bracket has increased by more than 50% over the past two years.

“The strong rise in financial assets resulted in an increase in inequality in 2021,” the report by Credit Suisse, which helps manage the fortunes of many of the world’s richest people, said. “We estimate that global wealth totalled $463.6tn at the end of 2021, a rise of $41.4tn (9.8%),” the report said.

The increase in wealth has not been distributed fairly. The richest 1% of the global population increased their share of all the world’s wealth for a second year running to 46%, up from 44% in 2020.

The number of US dollar millionaires increased by 5.2 million during 2021 to a total of 62.5 million – just under the 67 million population of the UK. Anthony Shorrocks, an economics professor and an author of the report said the number of millionaires was becoming so large that it was becoming “an increasingly irrelevant measure of wealth”.

More than a third of the millionaires live in the US, which is home to 24.5 million millionaires, or 39% of the world’s total. The number of US millionaires increased by 2.5 million – almost half of all new millionaires minted across the world. “This is the largest increase in millionaire numbers recorded for any country in any year this century and reinforces the rapid rise in millionaire numbers seen in the US since 2016,” the report said.

China is in second place, with 10% of the world’s millionaires, ahead of Japan with 5.4%, the UK (4.6%) and France (4.5%).

Switzerland was once again named the richest country in terms of mean average wealth per adult at $700,000, ahead of the US at $579,000. However, the inequalities in those countries are highlighted when the median average wealth per adult is examined. Switzerland falls to sixth place with a median wealth of $168,000 and the US drops to 18th place with $93,000. Australia is top of the median wealth table with $274,000. UK adults have a mean wealth of $309,000 (14th place) and a median wealth of $142,000 (ninth place).

Number of global ultra high net worth individuals hits record high | The super-rich | The Guardian

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