UBS Global Wealth Report reveals changing global wealth patterns
The average Canadian’s wealth is US$375,800, more than those in France, UK, Germany, and Japan, according to a new report.
The 2024 UBS Global Wealth Report shows that Canada has maintained its number 10 ranking this year for both average wealth and median wealth ($142,587) amid a changing landscape for global wealth.
Following on from the global wealth report from Boston Consulting Group reported by Wealth Professional earlier this week, the UBS study highlights a rebound for global wealth in 2023 following the decline of the previous year.
The 4.2% gain in 2023 offset the loss from 2022, regardless of whether it is expressed in US dollars or local currencies. Also, with slower inflation, real growth exceeded nominal growth in 2023, resulting in inflation-adjusted global wealth growing by nearly 8.4%.
On an individual market level, Switzerland continues to top the list for average wealth per adult ($709,602), followed by Luxembourg ($607,524), Hong Kong SAR ($582,000) and the United States ($564,862). The biggest wealth increases in 2023 occurred in Turkey, Qatar, and Russia, with Turkey posting a staggering growth of 157%.
“The world economy is embarking on a period of profound structural change. Such episodes often create significant changes in wealth patterns,” said Paul Donovan, chief economist at UBS Global Wealth Management. “At the same time, wealth is needed to finance the investment in both technology and people that will allow humanity and the planet to thrive in the brave new world. Knowing where and how wealth is held is essential to mobilizing it effectively.”
While the data shows that Asia Pacific saw the fastest rise in wealth since 2008, almost 177%, it has also seen debt surge by 192%.
The report also reinforces the continuation of a large transfer of wealth in the coming years, both generationally, but also horizontally, such as between spouses or partners with women likely to benefit most due to longer life expectancy. Just over 10% of the total great wealth transfer, or around $9 trillion, is expected to be passed on horizontally first, most of it in the Americas.
