According to a recent report from Credit Suisse, the number of millionaires worldwide decreased by 3.5 million last year due to a significant decline in stocks and bonds. However, there are still 59.4 million individuals who remain members of this exclusive club.
The report highlights the impact of global wealth inequality, revealing that 2.8 billion people, which accounts for 53% of all adults, possess wealth below $10,000. On the other hand, the number of individuals with wealth ranging from $10,000 to $100,000 has tripled over the course of this century, largely driven by the economic prosperity of countries like China and other emerging economies. This segment now consists of 1.8 billion people.
The upper middle segment, characterized by wealth ranging from $100,000 to $1 million, has also experienced substantial growth over the same period.
The report further states that global median wealth per adult has risen from $1,590 in 2000 to $9,167 in 2022, reflecting an average annual growth rate of 8.3%.
However, total net private wealth saw a decline of $11.3 trillion or 2.4%, bringing it to $454.4 trillion in 2022. Adjusted for exchange rates and inflation, real wealth decreased by 2.6%.
This decline in wealth was primarily observed in wealthier nations as both stocks and bonds saw a drop in value. Financial assets worldwide declined by 6.8%, while non-financial assets increased by 3.2%.
It is important to note that this decline in wealth follows a record-breaking year of wealth creation in 2021, which occurred one year after the onset of the global pandemic.
In terms of individual countries, the United States alone experienced a loss of $5.9 trillion in wealth last year, following a surge of $19.5 trillion in 2021.