Despite the long corona crisis, private wealth is increasing worldwide – and rapidly. But the money does not reach everyone, on the contrary. Comparatively few people combine large parts of their private financial assets in an exclusive circle.
According to a study, people around the world accumulated above-average wealth in the second year of Corona. However, this remained unequally distributed. The total assets from financial assets and tangible assets minus debts rose in 2021 compared to the previous year by more than ten percent to a record value of 473 trillion US dollars (around 441 trillion euros), mainly thanks to the boom on the stock markets, according to an analysis by the Boston management consultancy Consulting Group (BCG). It was the strongest increase in more than a decade.
However, wealth is unequally distributed. The financial assets of the super-rich increased by 16 percent within a year, while the increase for adults with comparatively small stocks of securities, bank accounts or life insurance amounted to just 5 percent.
In Germany alone, according to the information, 3,100 super-rich own more than a fifth of all private financial assets. The club of the super-rich, each with financial assets of more than $100 million, grew by around 300 members last year. The United States took the top spot with 25,800 super-rich, followed by China with 8,500 members of the club. Germany came in third. Globally, around 69,000 super-rich held 15 percent of investable financial assets. “Traditionally, Germans prefer to invest in real estate than in securities, which is clearly shown by the real asset ratio of more than 65 percent,” explained BCG partner Anna Zakrzewski.
According to the study, private financial assets in Germany, which include cash, account balances, shares, shares in investment funds or claims from pensions and life insurance, grew by eight percent to more than nine trillion dollars. Real assets, including real estate, art and gold, rose by 11 percent to $13 trillion. Real estate in particular has been showing strong increases in value for some time.
Despite the economic consequences of the Ukraine war, the consulting firm expects wealth to continue to rise worldwide. Strong growth is expected above all in Asia (excluding Japan). If the Russian attack on Ukraine ends this year, annual global wealth is expected to grow by 5.3 percent to almost $80 trillion by 2026. The study calculated an increase of 5 percent on average if the war continues and the sanctions are tightened or last longer. “Wealth development is surprisingly robust; even against the background of geopolitical turbulence, wealth will continue to grow worldwide,” said Zakrzewski.
