Despite the pandemic, more than 5 million people have become millionaires
The coronavirus pandemic has brought suffering and economic losses to all parts of the world, but it has also brought good news to the wealthy. Last year, an estimated 5.2 million people became millionaires, while the number of people with a net worth of at least US$50 million increased by nearly a quarter. one.
A Credit Suisse report found that as central banks inject cheap funds into financial markets and push up asset prices, the total global wealth accumulated by households has increased by approximately US$28.7 trillion in 2020.
Higher valuations of stocks and residential properties have raised total household net assets (assets including real estate minus debt) to approximately US$418.3 trillion. At a constant exchange rate, this increase is equivalent to an increase of 4.1%-only slightly lower than the annual average of the past two decades, even though the global economy is struggling to cope with the health crisis and blockade restrictions.
The Credit Suisse report stated: “The contrast between what happens in household wealth and what happens in the wider economy cannot be more obvious.” The study found that the wealthiest people benefit the most from the policy response to inflated assets. Most countries The gap between the rich and the poor is widening.
Since 2000, the total wealth of individuals with a net worth of at least $1 million has nearly quadrupled to $191.6 trillion, and their share of global wealth has risen from approximately 35% to 46%.
An estimated 2.9 billion people-equivalent to 55% of all adults-have a net worth of less than US$10,000 at the same time. The paper, co-authored by economists Anthony Shorerocks, James Davis, and Rodrigo Luberas said: “In 2020, the wealth gap between adults in the world and most countries enlarged.”
The study estimated that by the end of 2020, there were US$56.1 million millionaires worldwide, an increase of 5.2 million from a year ago. About one-third of new millionaires are from the United States.
Although about 90% of millionaires have a net worth of less than US$5 million, it is estimated that 7 million worth of assets exceed this figure. At the top end, there are 215,030 people with a net worth of more than US$50 million—up from 173,620 a year ago.
The author wrote: “This will be a very high increase in any year, but it is particularly noticeable during a year of social and economic turmoil.” “The nature of the policy response to the pandemic certainly has a significant impact. .”
Millionaires are still uncommon in India, Indonesia and Russia, at about one in a thousand, and relatively rare in China, at one in 200. In comparison, the proportion in the United States is 8% and in Switzerland it is 15%. Credit Suisse’s methods include housing wealth and investable assets.
The country severely affected by the coronavirus is one of the countries with the largest increase in household net worth. The study found that North America and Europe benefited the most, with total wealth increasing by about 10%.