Global wealth projected to rise 38% by 2027
ZURICH: Global wealth, measured in personal assets ranging from real estate to stocks and shares, is expected to grow by 38% by 2027, driven largely by emerging markets, according to research from Credit Suisse and UBS published on Tuesday.
The annual Global Wealth Report, which estimates the wealth of 5.4 billion adults in 200 markets, says global wealth will reach $629 trillion over the next five years. The optimistic outlook comes despite global household net worth declining in 2022 for the first time since the 2008 global financial crisis.
According to the report, in nominal terms, net private wealth fell by 2.4% last year, with the loss concentrated in more prosperous regions such as North America and Europe. The stronger US dollar was an important factor.
Last year, the largest wealth growth was experienced in Russia, Mexico, India and Brazil. The report predicts that the wealth of emerging economies, including the BRICS countries that include Brazil, Russia, India, China and South Africa, will grow by 30% by 2027.
He expects further growth in emerging markets to help reduce global wealth inequality in the coming years. Financial assets accounted for the largest decline last year, compared to non-financial assets such as real estate, which remained resilient.
On an individual basis, this meant that adults were $3,198 worse off at the end of last year. However, according to the report, “global median wealth, arguably a more meaningful indicator of where the average person stands, increased by 3% in 2022, compared to a 3.6% decline in wealth per adult. Median wealth has increased fivefold this century, thanks in large part to China’s rapid wealth growth.
Published in EDP BLOGS on August 16, 2023.
