The pandemic has widened the gap between rich and poor
According to the Global Wealth Report, 1.1 percent of the world’s adult population own almost 46 percent of all private wealth. Despite Corona, the amount rose to $ 418 trillion. However, only some regions and countries benefit.
WITHBetween January and March 2020, the coronavirus pandemic wiped out private fortunes of $ 17.5 trillion. However, the upswing in share prices and real estate prices that began afterwards pushed total household wealth around the world by 7.4 percent to $ 418 trillion for the year as a whole. Adjusted for exchange rate effects, the increase was 4.1 percent. This is what the major Swiss bank Credit Suisse (CS) calculated and published on Tuesday in its “Global Wealth Report 2021”. Accordingly, each of the 5.2 billion adults on this earth has a fortune of around 80,000 dollars.
But this average conceals the fact that wealth is very unevenly distributed. While the gap between rich and poor had closed slightly in the four years before Corona, it widened again last year.
Three million dollar millionaires in Germany
According to the calculations of the Credit Suisse Research Institute, 1.1 percent of the adult population own just under 46 percent of private wealth, a total of 192 trillion dollars. In 2019, the global wealth share of millionaires and billionaires was 43 percent. At the bottom of the wealth pyramid, the rich are compared to 2.9 billion people, or 55 percent of the population, each with less than $ 10,000. Together they hold 1.3 percent of all assets after 1.4 percent in the previous year.
This development reflects the fact that many governments in richer countries provided emergency aid during the pandemic and took employment policy measures that contained the income losses of the residents. In poorer countries, however, many people lost jobs and wages, especially women and young people working in service industries such as hospitality.
A regional analysis reveals that wealth in North America, Europe, China and the Asia-Pacific region rose significantly in 2020, while it fell in Latin America and India. In addition to exchange rate effects, the composition of the respective stock markets plays a role, said CS manager Nannette Hechler-Fayd’herbe in an interview with journalists. For example, the American stock market has benefited from the dominance of large technology companies, whose share prices were even boosted by the pandemic. In addition, when compared internationally, Americans hold an above-average proportion of their wealth in stocks.
According to this, there are 22 million dollar millionaires in the United States, 5.3 million in China and just under 3 million in Germany. If you put the millionaires in relation to the number of adult residents, Switzerland is the undisputed leader with just under 15 percent. It is followed by Australia (9.4 percent), the United States (8.8), Hong Kong (8.3) and the Netherlands (7.7). With a millionaires share of 4.3 percent, Germany is not in the top ten. In 2015 the proportion was only 2.5 percent.