The amount of wealth in the world could be equally divided up to give every adult person on the planet $100,000 by 2024, according to the findings of a global wealth report by Credit Suisse.
Wealth per adult last year was $87,849, a rise of 8.4% from a year ago. Global wealth last year totaled $463.6 trillion at current exchange rates, a gain of nearly 10%, said the Swiss bank, which has studied the subject for the past 13 years. Setting aside exchange rate movements, aggregate global wealth grew by 12.7% in 2021, which is the fastest annual rate ever recorded.
Although all regions contributed to the rise in global wealth, North America and China dominated, with North America accounting for a little over half the global total wealth and China adding another quarter. The number of Chinese millionaires is expected to double to 12.2 million by 2026, despite Beijing’s “common prosperity” campaign and a weakening Chinese economy.
Global wealth in 2022 is not expected to fare as well. Inflation, rising interest rates, and declining asset price trends likely will dampen its growth.
Nonetheless, “by 2024, global wealth per adult should pass the $100,000 threshold and that the number of millionaires will exceed 87 million individuals over the next five years,” said Nannette Hechler-Fayd’herbe who heads up economics and research at Credit Suisse.
In reality however, the top 1% of the world own 45.6% of wealth, rising for a second year running from 43.9% in 2019. The share of ultra-high-net-worth-individuals, or those with $30 million or more in investable funds, grew by 21%. Despite these wealth disparities, the gap between rich and poor has fallen over the past century thanks to progress in poor countries.
“The average household has thus been able to build up wealth over the last two decades,” said Anthony Shorrocks, economist and an author of the report.