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Study: The wealthy have gotten richer – experts predict the end of the trend

Study: The wealthy have gotten richer – experts predict the end of the trend
Written by insideindyhomes

Updated on 06/14/2022 at 06:37

  • The rich around the world have increased their wealth significantly in the second year of Corona. Increased share prices also contributed to this.
  • At the same time, the club of dollar millionaires is growing.
  • However, the forecast for 2022 promises an end to this trend.

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The wealthy around the world have benefited from higher share prices and the economic recovery after the Corona crisis in 2020 in the past year. According to calculations by the consulting firm Capgemini, their assets rose by 8 percent year-on-year to a record total of 86 trillion US dollars (around 82 trillion euros). At the same time, the club of dollar millionaires grew, including in Germany, which is one of the three countries with the most wealth. “However, our forecast for 2022 is much more cautious,” said Capgemini expert Klaus-Georg Meyer with a view to the overall development.

Interest rate increases by the central banks in the fight against high inflation weigh on the mood on the stock markets and depress stock prices. Capgemini estimates that the wealth of people with investable assets of at least $1 million shrank by about 4 percent worldwide from the end of last year to the end of April 2022.

Dollar Millionaires Club is growing

According to calculations, the club of dollar millionaires worldwide grew again strongly by 7.8 percent to 22.5 million members last year. In Germany, almost 100,000 people or 6.4 percent were added. A total of 1.63 million members were counted in this country. “Things are steadily improving when we review the past few years,” said Meyer.

According to the calculations, the total wealth of dollar millionaires in Germany rose by 7.4 percent to around 6.3 trillion dollars (around 6 trillion euros). In addition to increased share prices, a higher savings rate and the real estate boom also contributed to this.

For comparison: According to Bundesbank figures, the financial assets of private households in Germany totaled around 7.61 trillion euros at the end of last year. Cash and bank deposits, securities such as stocks and funds, and claims against insurance companies are taken into account, but not real estate.

These are the countries with the most millionaires

According to Capgemini, Germany is still one of the countries with the most dollar millionaires. At the top are the USA (7.46 million), followed by Japan (3.65 million). China follows Germany in fourth place with 1.54 million wealthy individuals. “It’s a matter of time before China will overtake Germany,” Meyer suspects. Overall, 63.6 percent of all dollar millionaires worldwide are concentrated in these four countries.

Around the world, the strongest growth reported last year was among the soup rich, who have at least $30 million in investable assets. Total assets grew by 8.1 percent. The number of the super-rich increased by 9.6 percent to around 220,000.

Recently published studies on the subject come to a similar conclusion, even if the numbers are not identical due to differences in methodology. Capgemini’s annual World Wealth Report includes equities, fixed income, alternative investments such as private equity, cash and real estate when not used by the company. This does not include collections or consumer goods. (dpa/ska)
© dpa

According to estimates by peace researchers, the number of nuclear weapons in the world could increase again over the next decade.

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