Report: Global Wealth Fell for 1st Time Since 2008 Crisis

The world had fewer millionaires at the end of 2022 than at the beginning.

That’s according to a report issued Tuesday (Aug. 15) by UBS and Credit Suisse showing that global wealth fell for the first time since the 2008 financial crisis.

“The 3.4% household wealth growth in 2022 was the lowest rate recorded in any year this century apart from 2008,” the report said.

“It was also the only year this century, other than 2008, in which the total value of household financial assets declined even when exchange rate changes were discounted. The key contributors to this situation were the reduced value of financial assets, a stronger US dollar and elevated inflation.”

According to the report, inflation reduced wealth growth by 6%, turning a gain of 3.4% into a real wealth loss of 2.6%. The banks also say there were 4.4 million “inflation millionaires,” that is, people who would no longer be considered millionaires if their wealth was adjusted for inflation.

The number of actual millionaires dropped by 3.5 million last year to 59.4 million.

Recent research by PYMNTS shows that even as inflation eases, consumers still worry about its effect, with 83% saying price increases are a top concern when it comes to the economy.

“Across demographics, consumers cited higher prices as their top concern. Ninety-one percent of baby boomers and seniors cited the reason as their highest concern,” PYMNTS wrote earlier this week. “The lowest response rate across generations agreeing with the statement was 73% by bridge millennials.”

And this concern is felt by the wealthy and less-wealthy alike, with 80% of consumers earning more than $100,000 per year agreeing with the sentiment, along with 85% of those earning between $50,000 and $100,000 and 83% of those earning under $50,000 annually.

Meanwhile, the UBS/Credit Suisse report predicts a brighter wealth picture, projecting that global wealth will increase by 38% in the next five years, hitting $629 trillion by 2027.

“Growth by middle-income countries will be the primary driver of global trends,” the report said. “We estimate wealth per adult to reach USD 110,270 in 2027 and the number of millionaires to reach 86 million while the number of ultra-high-net-worth individuals is likely to rise to 372,000.”