Credit Suisse’s 2016 Global Wealth Report: More Billionaires and More Inequality
Credit Suisse’s annual study on global wealth has confirmed that there has been no rise in the people’s access to wealth in 2016. It has remained unchanged from the previous year. (Source: “Global Wealth Report 2016,” Credit Suisse, last accessed December 20, 2016.)
The Global Wealth Report reveals that global wealth grew by $3.5 billion; it stands at $256.0 billion, a gain of 1.4%. However, wealth creation has just kept pace with population growth. It remained unchanged for the first time since 2008, at about $52,800.
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The report finds that wealth inequalities, measured by the share of the richest one percent and the 10% of richest adults relative to the rest of the world’s adult population, are steadily increasing. While the lower half holds less than one percent of total assets altogether, the richest 10% own 89% of the world’s assets.
The United States Stands Out for Overall Wealth
American families control 33.2% of the world’s $256.0-trillion net worth. That translates to an average of $345,000 when you divide total U.S. net worth by the number of all American adults.
As for adults halfway down the wealth scale, their median net worth stands at $45,000. To see just how much wealthier Americans are, consider that worldwide, the average net worth is $53,000 and median net worth is just $2,200. (This sum represents both financial assets—like stocks and bonds—and property, apart from any related housing estate debts).
Credit Suisse calculated that the United States has the highest percentage of the world’s millionaires: 41.2%. In contrast, almost 35% of American adults have a net worth below $10,000.00. That, however, still beats 73.2% of the world’s population.
Not surprisingly, the United States generated significant additional wealth. The United Kingdom, however, declined sharply due to the depreciation of its currency, which has lost about 16% against the dollar since the Brexit referendum last June.
As for the billionaires, Credit Suisse had some surprises. The bank predicts there will be an additional 945 billionaires in the world over the next five years, bringing the total number to about 3,000. If over 300 of those emerge in North America, China will see the fastest accumulation. By 2022, China alone could have 420 billionaires. (Source: Ibid.)
