The FINANCIAL — Aggregate global wealth rose by $14.0 trillion (4.6%) to $317 trillion during the twelve months to mid-2018, outpacing population growth, according to Credit Suisse Research Institute’s 2018 Global Wealth Report. Wealth per adult grew by 3.2%, raising global mean wealth to a record high $63,100 per adult.
The US contributed most to global wealth, adding $6.3 trillion, taking its total to $98 trillion and continuing its unbroken run of growth in total wealth and wealth per adult every year since 2008
China is now clearly established in second place in the world’s wealth hierarchy, adding $2.3 trillion to take its total to $52 trillion; a projected addition of a further $23 trillion in the next five years would take its share of global wealth from 16% in 2018 to just above 19% in 2023
Non-financial assets have continued their accelerated growth over the past 12 months, providing the main impetus for overall growth in all regions except North America, accounting for 75% of the rise in wealth in China and Europe, and all of the rise in India
Other winners were Germany, France and the UK, which all recorded increases of nearly $1 trillion, and Italy and Japan, with c.$500 billion each
Switzerland ($530,240) and Australia ($411,060) again topped the league table of mean wealth per adult
France, Germany, the UK and Italy all saw double-digit growth in the number of millionaires, though the US led the way with a total of 17,350,000 (an increase of 5.3% on last year)
Key themes addressed in the Global Wealth Report include:
Women and Wealth
Women now account for an estimated 40% of global wealth overall, their share of wealth having grown considerably during the 20th century, but potentially having stalled since 2000. The Report explores how this varies globally, along with differences in portfolio composition, risk aversion and the impact on female Millennials.
The Global Wealth Pyramid
The top two tiers of the global wealth pyramid (>$100,000) cover 9.5% of the global population, who collectively own 84.1% of global wealth – down from 86% last year. The bottom two tiers cover 90.5% of the global population, who collectively own 15.8% of global wealth, corresponding to $50.4 trillion – a considerable uplift on last year’s $40 trillion, and evidence of a trend towards a narrowing of the global wealth gap.
Global wealth is projected to rise by nearly 26% over the next five years, reaching $399 trillion by 2023. Emerging markets are responsible for 32% of the growth, despite accounting for just 21% of current wealth. The number of millionaires will grow markedly over the next five years, reaching a new all-time high of 55 million.