Credit Suisse has said that the world’s average adult will be worth $100,000 by 2024 because the war in Ukraine is sinking asset classes and private fortunes this year.
According to Credit Suisse Group AG’s Global Wealth Report 2022, the number of millionaires globally will grow by 40 per cent in the next five years.
With China almost doubling its millionaire population, the number will grow faster in emerging economies.
Up from 62.5 million in 2021, there will be more than 87.5 million people with at least $1 million in wealth by 2026.
Credit Suisse sees a fast recovery in the global economy the 500 richest people in the world have lost $1.4 trillion in cumulative fortune in the first half of the year.
Amid Covid lockdowns and crackdowns in sectors including tech and property, the Chinese economy is showing signs of strain.
“We expect household wealth in China to continue to catch up with the United States, advancing the equivalent of 14 US years between 2021 and 2026,” the report states.
With wealth per adult climbing 28 per cent globally and surpassing $100,000 in 2024, Credit Suisse forecasts private fortunes will rise 36% to $169 trillion by 2026.
Following the coronavirus pandemic, developing markets regained momentum last year and Credit Suisse expects them to narrow the gap with the developed world in the next five years.
(With inputs from agencies)
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