June 2021 Research Institute - Credit Suisse

June 2021

Research

Institute

Global wealth report 2021

Thought leadership from Credit Suisse and the world¡¯s foremost experts

Introduction

Now in its twelfth year, I am proud to present to

you the 2021 edition of the Credit Suisse Global

Wealth Report.

This report delivers a comprehensive analysis on

available global household wealth, underpinned

by unique insights from leading academics in the

field, Anthony Shorrocks and James Davies.

This year¡¯s edition digs deeper into the impact

of the COVID-19 pandemic and the response

of policymakers on global wealth and its

distribution. Mindful of the important wealth

differences that have built over the last year,

our report also offers perspectives and, indeed,

encouraging prospects, for wealth accumulation

throughout the global wealth pyramid as we look

to a world beyond the pandemic.

I hope you find the insights of this edition of the

Global Wealth Report to be of particular value in

what remain unprecedented times.

Ant¨®nio Horta-Os¨®rio

Chairman of the Board of Directors

Credit Suisse Group AG

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Editorial

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Global wealth levels 2020

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Global wealth distribution 2020

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Wealth outlook for 2020¨C25

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Country experiences

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Canada and the United States

China and India

France and the United Kingdom

Germany, Austria and Switzerland

Denmark, Finland, Norway and Sweden

Japan, Korea, Singapore and

Taiwan (Chinese Taipei)

Australia and New Zealand

Nigeria and South Africa

Brazil, Chile and Mexico

Greece, Italy and Spain

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About the authors

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General disclaimer / important information

Cover photo: Getty Images, Onfokus; photo right: Getty Images, Niccolo Guasti

For more information, contact:

Richard Kersley

Head Global Thematic Research, Global Markets

Credit Suisse International

richard.kersley@credit-

Nannette Hechler-Fayd¡¯herbe

Chief Investment Officer International Wealth Management

and Global Head of Economics & Research

Credit Suisse AG

nannette.hechler-fayd¡¯herbe@credit-

Credit Suisse Research Institute

research.institute@credit-

researchinstitute

Global wealth report 2021

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Photo: GettyImages, Steve Strike

Global wealth levels 2020

Anthony Shorrocks, James Davies and Rodrigo Lluberas

Now in its twelfth edition, the Credit Suisse Global Wealth Report is the

most comprehensive and up-to-date source of information on global

household wealth. Wealth creation in 2020 was largely immune to the

challenges facing the world due to the actions taken by governments and

central banks to mitigate the economic impact of COVID-19. Total global

wealth grew by 7.4% and wealth per adult rose by 6% to reach another

record high of USD 79,952. Overall, the countries most affected by the

pandemic have not fared worse in terms of wealth creation.

Uncertain times

The short-term consequences of the COVID-19

pandemic for household wealth are now much

clearer than they were last summer. They

confound expectations. The widespread negative

impact on gross domestic product (GDP) was

recognized early in 2020, and since reductions

in the level of economic activity are typically

associated with reductions in household wealth,

financial markets responded in a predictable way

and share prices dived in February and March.

No region was immune. By the second half of

March, the S&P 500 had fallen by 34%, the

FTSE100 by 35%, the DAX by 39%, and the

Nikkei by 31%. China was more resilient, but

this did not prevent the Shanghai index from

also falling, albeit by a more modest 13%. As

a result, we estimate that USD 17.5 trillion was

lost from total global household wealth between

January and March 2020, equivalent to a fall of

4.4%. Global wealth per adult declined by 4.7%.

Reassured by the prompt action of governments

and central banks, financial markets regained

confidence and the losses in equity markets were

largely reversed by the end of June. That much

was understandable. But what happened in the

second half of 2020 was unforeseen. Share

prices continued on an upward path, reaching

record levels by the end of the year. After initially

pausing to take stock, housing markets were

also infected by the prevailing optimism, and

house prices rose at rates not seen for many

years. These asset price increases have led to

major gains in household wealth throughout the

world. The net result was that USD 28.7 trillion

was added to global household wealth during the

year. At the end of 2020, it totaled USD 418.3

trillion, up 7.4%. Wealth per adult rose 6.0% to

a new record high of USD 79,952. Depreciation

of the US dollar flatters these gains: adjusting for

exchange rate changes, total wealth would have

risen by 4.1% and wealth per adult by 2.7%.

Nevertheless, bearing in mind the widespread

economic disruption, household wealth and

macroeconomic indicators seem to be on

different trajectories. Stranger still, countries

most affected by the COVID-19 pandemic have

often been those recording the greatest gains

in wealth per adult. The contrast between what

has happened to household wealth and what is

happening in the wider economy can never have

been more stark.

Global wealth report 2021

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