Despite the challenging economic times in the near term, the outlook is rosy says Credit Suisse in its Global Wealth Report
Global wealth at the end of 2021 was estimated at around US$464 trillion and there’s a significant increase ahead according to Credit Suisse.
Its Global Wealth Report 2022 acknowledges that the near-10% increase in wealth last year compared to 2020 is unlikely to continue for 2022/2023 as recession reduces wealth gains in some economies.
However, the outlook is positive, and the report anticipates a cumulative 36% increase in global wealth by 2026, that means an extra $169 trillion over the next few years.
Middle-income countries are expected to account for the rise and global wealth per adult is forecast to exceed $100,000 by 2024.
The number of millionaires globally is targeted to reach 87 million in the next five years.
Asset prices
Of course, much of the growth in global wealth relies on asset prices gaining and the effect of exchange rates.
In 2021, it was share prices that drove gains, and year-over-year increases were prominent in India (31%), France (28%), US (23%), Italy (23%), and Canada (22%).
House prices also contributed and again, Canada features in the top set with a 14% year-over-year gain in 2021, along with Germany (12%), UK (10%), US (9%) and France (8%).
Overall wealth growth per household increased most in New Zealand (up 32% or almost $115K) while gains above $50K were also achieved by the US, Australia, and Canada.
Canada sits at 7th among counties analyzed in terms of both mean wealth per adult (US$409,300) and median wealth per adult ($151,250). From 2019-2021, Millennials and Gen Xers saw the largest percentage gains in wealth in Canada with an average 19% across these generations.
Switzerland tops the list for mean wealth per adult ($696,600) while Australia leads for median wealth per adult ($28,450).
