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Credit Suisse publishes its 12th Global Wealth Report 2021 showing continued wealth Growth

Hong Kong came in third after Switzerland and the US in terms of average wealth per adult, despite recording the fourth-largest decrease globally in the number of millionaires.

Wealth creation in 2020 was largely immune to the challenges facing the world due to the actions taken by governments and central banks to mitigate the economic impact of COVID-19, according to Credit Suisse’s 12th Global Wealth Report. Total global wealth grew by 7.4% and wealth per adult rose by 6% to reach another record high of USD 79,952. Overall, the countries most affected by the pandemic have not fared worse in terms of wealth creation.

The pandemic had a profound short-term impact on global markets in the first quarter of 2020. The report estimates that USD 17.5 trillion was lost from total global household wealth between January and March 2020, equivalent to a fall of 4.4%. This was largely reversed by the end of June. Surprisingly, in the second half of 2020 share prices continued on an upward path, reaching record levels by the end of the year. Housing markets also benefitted from the prevailing optimism as house prices rose at rates not seen for many years. The net result was that USD 28.7 trillion was added to global household wealth during the year.


Key highlights

  • Aggregate global wealth rose by USD 28.7 trillion to reach USD 418.3 trillion at the end of 2020. In terms of current US dollars, total wealth grew by 7.4% and wealth per adult was up 6.0%. However, widespread depreciation of the US dollar accounted for 3.3 percentage points of the growth. If exchange rates had remained the same as in 2019, total wealth would have grown by 4.1% and wealth per adult by 2.7%.
  • The regional breakdown shows that total wealth rose by USD 12.4 trillion in North America and by USD 9.2 trillion in Europe. These two regions accounted for the bulk of the wealth gains in 2020, with China adding another USD 4.2 trillion and the Asia-Pacific region (excluding China and India) another USD 4.7 trillion.
  • India and Latin America both recorded losses in 2020. Total wealth fell in India by USD 594 billion, or 4.4% in percentage terms. This loss was amplified by exchange rate depreciation: at fixed exchange rates, the loss would have been 2.1%. Latin America appears to have been the worst performing region, with total wealth dropping by 11.4% or USD 1.2 trillion.
  • Total debts increased by 7.5% and would likely have increased much more if households had not been obliged to save more by the constraints on spending. Total debt rose markedly in China and Europe, but declined in Africa and in Latin America, even after allowance is made for exchange rate depreciation.
  • Windfalls from unplanned savings and prevailing low interest rates saw a revival in housing markets during the second half of 2020. The net result was a better-than-average year for homeowners in most countries.


Asia Pacific highlights

  • In Asia Pacific, there were 57,318 ultra-high-net-worth adults with net worth exceeding USD 50 million in 2020. This represents 26.7% of the global ultra-high-net-worth adult population and ranks the region second after North America.
  • The number of ultra-high-net-worth adults in Asia Pacific is expected to grow by approximately 42,000 to reach a total of nearly 99,000 in 2025.
  • Asia Pacific housed 15.6 million millionaires in 2020 and this number is expected to increase by 71.0% to approximately 26.7 million in 2025.
  • Asia Pacific was the largest contributor to household wealth. Total household wealth was USD 162,994 billion in end-2020, or 39% of the global total of USD 418,342 billion.
  • Household wealth in Asia Pacific grew by USD 8,346 billion in 2020.
  • Financial assets accounted for most of the gain in total wealth as they have done in most years since the financial crisis. Financial assets in the Asia-Pacific region grew by USD 6,482 billion in 2020, while non-financial assets increased by USD 3,679 billion.


Mainland China

  • With 5.3 million millionaires, China accounted for 9.4% of the world’s millionaires in 2020, ranking second globally behind the US. The number of millionaires in mainland China is expected to grow by 92.7% to reach 10.2 million in 2025.
  • China had 28,130 ultra-high-net-worth individuals, coming in second only to the United States in terms of the number of individuals. This number marked an increase in China of 9,830 individuals compared to 2019. By 2025, China is expected to host an additional 23,790 ultra-high-net-worth individuals.
  • Mean wealth per adult was USD 67,771 in 2020, 5.4% higher than in 2019, having grown at an average annual rate of 14.9% from 2000 to 2020, versus an average global annual growth rate of 4.8%.
  • China contributed USD 4.2 trillion of the total global wealth gains of USD 28.7 trillion in 2020.
  • Financial assets accounted for 44.2% of gross assets compared to 36.4% in 2000 and financial assets per adult have risen by 16.5% on average in China since 2000.
  • China’s real GDP for 2020 was 2.3% higher than in 2019 and expected GDP growth is 8.4% and 5.6% in 2021 and 2022, respectively.


Hong Kong SAR

  • Hong Kong SAR saw the fourth-largest decrease globally in the number of millionaires, with approximately 520,000 at end-2020 compared to 560,000 at end-2019, mainly due to currency depreciation. Hong Kong’s millionaire population is anticipated to increase to 831,000 in 2025.
  • Hong Kong’s millionaire density is ranked fourth globally and stand at a high of 8.3%, up from 5.8% and 2.3% in 2015 and 2000, respectively.
  • It had 2,801 ultra-high-net-worth adults with net worth exceeding USD 50 million. This number is expected to increase to 4,442 in 2025.
  • Average wealth per adult in Hong Kong SAR was USD 503,340, in third place after Switzerland and the US. Among the top 20 countries and markets with the highest average wealth per adult, Hong Kong SAR was the only one that marked a year-on-year decrease in average wealth per adult.
  • It retained its third position in terms of median wealth per adult at USD 173,770 in 2020, behind Australia and Belgium.


Global wealth levels in 2020

  • Wealth impacts of the pandemic have differed among population subgroups due to two main factors: portfolio composition and income shocks. The wealth of those with a higher share of equities among their assets, e.g. late middle age individuals, men, and wealthier groups in general, tended to fare better. Homeowners in most markets have seen capital gains due to rising house prices.
  • There have been large differences in income shocks during the pandemic. In many high-income countries the loss of labor or business income was softened by emergency benefits and employment policies. In countries with an absence of income support, vulnerable groups like women, minorities and young people were particularly affected.
  • Female workers initially suffered disproportionately from the pandemic, partly because of their high representation in businesses and industries badly affected by the pandemic, such as restaurants, hotels, personal service and retail. Labor force participation declined over the course of 2020 for both men and women, but the size of the decline was similar, at least in most advanced economies.


Wealth distribution in 2020

Wealth differences between adults widened in 2020. The global number of millionaires expanded by 5.2 million to reach 56.1 million. As a result, an adult now needs more than USD 1 million to belong to the global top 1%. A year ago, the requirement for a top 1% membership was USD 988,103. So, 2020 marks the year when for the first time, more than one percent of all global adults are in nominal terms dollar millionaires. The ultra high net worth (UHNW) group grew even faster, adding 24% more members, the highest rate of increase since 2003. Since 2000, people with wealth in the range of USD 10,000–100,000, have seen the biggest rise in numbers, more than trebling in size from 507 million in 2000 to 1.7 billion in mid-2020. This reflects the growing prosperity of emerging economies, especially China, and the expansion of the middle class in the developing world.


Wealth outlook 2020-25

Global wealth is projected to rise by 39% over the next five years, reaching USD 583 trillion by 2025. Low and middle-income countries are responsible for 42% of the growth, although they account for just 33% of current wealth. Wealth per adult is projected to increase by 31%, passing the mark of USD 100,000. Unadjusted for inflation, the number of millionaires will also grow markedly over the next five years reaching 84 million, while the number of UHNWIs should reach 344,000.


Anthony Shorrocks, economist and report author, said: “The pandemic had an acute short term impact on global markets but this was largely reversed by the end of June 2020. As we noted last year, global wealth not only held steady in the face of such turmoil but in fact rapidly increased in the second half of the year. Indeed wealth creation in 2020 appears to have been completely detached from the economic woes resulting from COVID-19. If asset price increases are set aside, then global household wealth may well have fallen. In the lower wealth bands where financial assets are less prevalent, wealth has tended to stand still, or, in many cases, regressed. Some of the underlying factors may self-correct over time. For example, interest rates will begin to rise again at some point, and this will dampen asset prices.”


Nannette Hechler-Fayd’herbe, Chief Investment Officer International Wealth Management and Global Head of Economics & Research at Credit Suisse, said: “There is no denying actions taken by governments and central banks to organize massive income transfer programs to support the individuals and businesses most adversely affected by the pandemic, and by lowering interest rates, have successfully averted a full scale global crisis. Although successful, these interventions have come at a great cost. Public debt relative to GDP has risen throughout the world by 20 percentage points or more in many countries. Generous payments from the public sector to households have meant that disposable household income has been relatively stable and has even risen in some countries. Coupled with restricted consumption, household saving has surged inflating household financial assets and lowering debts. The lowering of interest rates by central banks has probably had the greatest impact. It is a major reason why share prices and house prices have flourished, and these translate directly into our valuations of household wealth.”


The Global Wealth Report 2021 is available at: