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The coronavirus pandemic has caused misery and economic damage worldwide, but it has also been of good benefit to the rich, with approximately $ 5.2 million people converted last year, up from at least $ 50 million last year.
According to a report by Credit Suisse, the accumulated global wealth of households rose by about $ 28.7 billion in 2020, with central banks flooding financial markets with cheap money, inflating asset prices.
Higher valuations of equity and residential assets increased net equity (excluding assets, including property, debt) to approximately $ 418.3 million. The rise was equivalent to a 4.1 per cent rise in the constant currency, slightly below the annual average of the last two decades, even as global economies experienced health crises and tightening restrictions.
“The contrast between what has happened to the wealth of households and what is happening in the wider economy can never be more pronounced,” says the Credit Suisse report. He found that the richest benefited from the policy response that inflated assets, widening the gap between rich and poor countries.
Wealth among people with at least $ 1 billion in wealth has grown nearly fourfold since 2000 to $ 191.6 million, and the share of global wealth has risen from about 35 percent to 46 percent.
Approximately 2.9 billion people — the equivalent of 55 percent of all adults — had less than $ 10,000 in net assets. “The gap between adult wealth increased in 2020 for the rest of the world as well as in most countries,” says economists Anthony Shorrocks, James Davies and Rodrigo Lluberas.
According to the study, there were $ 56.1 billion worldwide in the world by the end of 2020, up from $ 5.2 billion a year earlier. One-third of the new millionaires came from the US.
Although about 90 percent of the millionaires had a net worth of less than $ 5 million, approximately 7 million had more than that amount. At its highest point, 215,030 had a net worth of more than $ 50 million, up from 173,620 registered a year earlier.
“It would be a very big increase in any given year, but it is particularly striking in a year of experiencing social and economic turmoil,” the authors wrote. “Of course, the nature of the political response to the pandemic has had a profound effect.”
Millionaires were rare in India, Indonesia and Russia, about one in a thousand adults, and quite rare in China, one in 200. They accounted for 8% of the U.S. population and 15 percent in Switzerland. Credit Suisse’s methodology included housing wealth and active investment.
Coronavirus-affected countries were among those with the greatest spread of domestic heritage. Earnings were highest in North America and Europe, where total wealth rose by about 10 percent, the study found.
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