Millionaire Meltdown: 3.5 Million Lose Wealth

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Amidst a tumultuous year for global markets, the ranks of millionaires took a significant hit, with 3.5 million individuals losing their coveted status, according to a new report from Credit Suisse. The report highlights the impact of a sharp decline in the value of stocks and bonds, which resulted in a wealth drop for many affluent individuals worldwide. However, despite this setback, there were still 59.4 million members of the exclusive nine-digit club, underscoring the enduring wealth divide.

The report also sheds light on the stark inequality that persists globally, revealing that over half of all adults, or 2.8 billion people, have a wealth below $10,000. On the other hand, the number of individuals with wealth between $10,000 and $100,000 has tripled in size this century, primarily driven by the economic prosperity of emerging economies like China. Additionally, the upper middle segment, encompassing those with wealth between $100,000 and $1 million, has also experienced significant growth. These figures demonstrate the evolving landscape of global wealth distribution and its implications for societal disparities.

Global Millionaires Decrease by 3.5 Million in 2022, Says Credit Suisse Report

According to a recent report from Credit Suisse, the number of millionaires worldwide decreased by 3.5 million in 2022 due to a significant drop in the value of stocks and bonds. Despite this decline, there are still 59.4 million individuals who can claim membership in the exclusive nine-digit club. Additionally, the report revealed that the number of individuals classified as ultra-high-net-worth, with wealth exceeding $50 million, also fell by 22,490.

Rising Wealth Inequality and Wealth Distribution

The report highlights the stark wealth inequality in the world, with 2.8 billion people, or 53% of all adults, having a net worth below $10,000. On the other hand, the number of individuals with wealth between $10,000 and $100,000 has tripled in size this century, largely due to the growing prosperity of emerging economies such as China. This segment now includes 1.8 billion people. Similarly, the upper middle segment, with wealth ranging from $100,000 to $1 million, has also tripled in size over the same period.

Global Wealth Growth and Decline

The report indicates that the global median wealth per adult has experienced significant growth, rising from $1,590 in 2000 to $9,167 in 2022. This translates to an average annual growth rate of 8.3%. However, despite this positive trend, total net private wealth declined by $11.3 trillion, or 2.4%, to $454.4 trillion in 2022. When adjusted for exchange rates and inflation, real wealth dropped by 2.6%.

Wealth Destruction Concentrated in Richer Nations

The majority of the wealth destruction occurred in wealthier nations, particularly in a year when both stocks and bonds experienced a decline in value. Financial assets worldwide dropped by 6.8%, while non-financial assets saw a modest increase of 3.2%. It is worth noting that this decline followed a record year of wealth creation in 2021, which came one year after the onset of the global pandemic.

Impact on the United States

The United States alone saw a staggering loss of $5.9 trillion in wealth in 2022, following a remarkable surge of $19.5 trillion in 2021. This decline can be attributed to the overall decline in stock and bond values during the year.

In conclusion, the Credit Suisse report reveals a decrease in the number of millionaires globally in 2022, primarily due to a drop in the value of financial assets. However, wealth inequality remains a significant issue, with a large portion of the global population having a net worth below $10,000. Despite this, the report also indicates overall growth in global wealth over the years, albeit with a slight decline in 2022. The impact of this decline was most pronounced in wealthier nations, with the United States experiencing a significant loss of wealth.

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