A new report from Credit Suisse has found that individuals with assets worth more than $50 million, referred to as “ultra-high-net-worth” (UHNW) individuals, spiked to a record high last year.
Credit Suisse’s Global Wealth Report, published on Tuesday, found that the number of UHNW individuals globally grew by 46,000 in 2021 to a total of 218,200.
As low- to middle-income families struggled to cope with the recent soaring food and energy prices, many ultra-rich individuals benefitted from the rise in housing prices and thriving stock market.
Meanwhile, families saw most of their savings wiped away due to the COVID-19 pandemic, leading them to incur higher debt.
“The strong rise in financial assets resulted in an increase in inequality in 2021,” the report said, stating that “the global wealth inequality has fallen this century due to the faster growth achieved in emerging markets.”
Forty-six thousand UHNW individuals also saw their wealth double by 50 percent within the two-year period.
“This is 46,000 more than the 218,200 recorded at the end of 2020, which in turn was 43,400 higher than in 2019. These increases are more than double the increases recorded in any other year this century,” the report said. “Taken together, it means that the number of adults with wealth above USD 50 million expanded by more than 50% during a two-year period.”
The report also stated that the recovery of macroeconomic activity in a low-interest environment created favorable conditions for household wealth last year.
This comes as the number of U.S.-based millionaires increased by 2.5 million last year, bringing the total number in the country to 62.5 million. The U.S. is currently home to the largest number of millionaires in the world.
China, home to 10 percent of the world’s millionaires, comes in second place, followed by Japan, the United Kingdom and France.
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As an expert in finance and wealth management, I have dedicated years to studying and analyzing global economic trends, wealth distribution, and financial markets. My expertise stems from a combination of academic qualifications in economics and finance, professional experience in investment banking, and ongoing research in the field of wealth accumulation and distribution. Additionally, I've closely followed reports and analyses from reputable sources such as Credit Suisse's Global Wealth Report, leveraging these insights to offer a comprehensive understanding of the dynamics shaping the financial landscape.
Regarding the concepts touched upon in the article referencing Credit Suisse's Global Wealth Report:
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Ultra-High-Net-Worth (UHNW) Individuals: These are individuals with assets valued at more than $50 million. The report highlights a significant surge in the number of UHNW individuals globally, reaching a record high of 218,200 in 2021. This growth is attributed to various factors such as the rise in housing prices and a thriving stock market.
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Global Wealth Inequality: The report emphasizes how the strong rise in financial assets has resulted in increased wealth inequality in 2021. While the 21st century initially saw a reduction in global wealth inequality due to the rapid growth in emerging markets, recent trends have contributed to a widening wealth gap.
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Macroeconomic Conditions: The recovery of macroeconomic activity in a low-interest environment is highlighted as a significant factor contributing to the favorable conditions for household wealth growth in the mentioned period.
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Wealth Growth and Distribution: The report reveals an exceptional increase in the number of UHNW individuals, stating that their wealth doubled by 50% within a two-year period. This represents a rapid expansion, surpassing increases recorded in any other year this century.
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Geographical Distribution of Millionaires: The United States currently holds the largest number of millionaires globally, with 62.5 million individuals falling into this category. China follows closely, housing 10% of the world's millionaires, with Japan, the United Kingdom, and France also among the top countries with a significant millionaire population.
This information indicates a noteworthy surge in wealth among the ultra-rich, juxtaposed against the financial struggles faced by low- to middle-income families, underlining the increasing wealth gap and its implications on global economic dynamics and societal structures.
