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United States Witnesses $5.9 Trillion Vanish in Wealth in 2022
Vignesh Karunanidhi
August 16, 2023
The recent annual Global Wealth Report by UBS, a prominent Swiss bank, reveals that Europe and the United States lost trillions of dollars. Reportedly, the US lost more wealth in comparison to any country in 2022.
In 2022, the United States experienced the largest decline in wealth compared to any other nation, with a reduction of $5.9 trillion. Additionally, the report unveiled that North America and Europe lost a combined $10.9 trillion in 2022.
Report reveals 1 million fewer American millionaires by 2022 end
The US saw a decline in millionaires, with a reduction of 1 million millionaires by the end of 2022. Nevertheless, the US maintained a substantial global presence. It accounted for more than half of the world’s ultra-high-net-worth individuals, according to the UBS report.The report shows some interesting data about Russia. Russia’s economic performance has defied expectations, standing out as a distinctive case of wealth growth. This is even amid the ongoing conflict in Ukraine. The recently published annual Global Wealth Report by UBS has provided insights into this phenomenon, highlighting that Russia’s wealth increased by a substantial $600 billion, all while geopolitical tensions remained prevalent.
Against the backdrop of significant wealth lost by both the United States and Europe, Russia’s ability to enhance its economic position has been notable. Despite the continuing war in Ukraine, the country managed to experience a notable upswing in its overall wealth. This presents a contrast to the challenges faced by other global economies.
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Crashing markets thinned the ranks of America's millionaires last year as global wealth shrank for the first time since 2008 | Business Insider India
Crashing markets thinned the ranks of America's millionaires last year as global wealth shrank for the first time since 2008
Phil Rosen
Aug 16 2023 01:36 IST
Private yachts docked in front of a yacht club. Marielle Descalsota/Insider
- Global wealth declined in 2022 for the first time since 2008, UBS and Credit Suisse economists said Tuesday.
- Americans were hit hardest as stocks and bonds tumbled throughout the year, the banks said.
Notably, about 1.7 million US adults lost their status as millionaires in 2022. Plus, 17,260 fell out of the ultra-high net worth bracket of those worth $100 million or more.
The S&P 500 crashed by 19% in 2022, and it was one of the 10 worst years for the stock market in nine decades. The losses erased most of the meteoric gains seen in 2021, when the market grew by more than 26% and wealth surged.
"[F]inancial assets contributed most to wealth declines in 2022 while non-financial assets (mostly real estate) stayed resilient, despite rapidly rising interest rates," the economists wrote. "But the relative contributions of financial and non-financial assets may reverse in 2023 if house prices decline in response to higher interest rates."
According to the report, in total dollar terms, global wealth slipped 2.4% to about $454.4 trillion, and much of that was due to shifting currency values. Europeans felt the bite from weaker currencies, while Russia and Latin America benefitted from the shifts. Russia, amid its war in Ukraine, added 56,000 millionaire amid a strengthening of the ruble.
