According to a global report, the number of millionaires worldwide decreased by 3.5 million in 2022, reaching 59.4 million.
The Argentine peso devalued 42% against the dollar
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The most recent report Global Wealth Report 2023 analyze the Familiar patrimony of 5.4 billion people around the world and projects that the global wealth It will reach $629 billion in 2027, despite a decline in 2022, the first since the 2008 global financial crisis. Latin America, meanwhile, presented an increase of US$2.4 billion in its total wealth.
Measured in current nominal US dollars, total private net worth decreased by $11.3 trillion (-2.4%), reaching 454.4 billion dollars at the end of 2022.
Meanwhile, wealth per adult also decreased by 3,198 dollars (-3.6%), reaching 84,718 dollars per adult at the end of the year, where much of this fall comes from the appreciation of the US dollar against many other currencies. Financial assets were the biggest contributors to declines while non-financial assets (eg property) remained resilient despite rapidly rising interest rates.
Wealth: which regions concentrated the biggest collapse
- Global wealth losses were heavily concentrated in wealthier regions, such as North America and Europe, which together lost $10.9 trillion;
- Asia-Pacific posted losses of $2.1 trillion, while Latin America is an exception with a total wealth gain of $2.4 trillion, driven by an average appreciation of 6% against the US dollar.
- Topping the list of losses in terms of countries in 2022 is the United States, followed by Japan, China, Canada and Australia.
- The largest increases in wealth were recorded in Russia, Mexico, India and Brazil.
Wealth: inequality fell
Along with the decline in aggregate wealth, the inequality of the world wealth it also declined in 2022, with the wealth share of the richest 1% globally falling to 44.5%.
There was also a decrease in the number of millionaires worldwide by 3.5 million in 2022, reaching 59.4 million. That number, however, does not take into account 4.4 million “inflation millionaires“who would no longer qualify if the millionaire threshold were adjusted for inflation in 2022.
- The global average wealthpossibly a more meaningful indicator of how the average person is doing, actually increased 3% in 2022, in contrast to the 3.6% decline in wealth per adult.
- Worldwide, the average wealth increased five times in this century, roughly double the growth rate of wealth per adult, largely due to rapid wealth growth in China.
Wealth: what place does Argentina occupy?
According to the global report, the interannual variations in the value of household wealth depend on the devaluation of the currency against the dollar. In this sense, the devaluation of the currency in Egypt (-37%), Argentina (-42%) and Türkiye (-46%) were the most pronounced. Overall, we estimate that exchange rate movements during 2022 led to a 5.8% decline in total global wealth measured in current US dollars.
Source: Ambito
