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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02 Editorial
05 Global wealth levels 2020
17 Global wealth distribution 2020
27 Wealth outlook for 2020?25
35 Country experiences
36 Canada and the United States 38 China and India 40 France and the United Kingdom 42 Germany, Austria and Switzerland 44 Denmark, Finland, Norway and Sweden 46 Japan, Korea, Singapore and
Taiwan (Chinese Taipei) 48 Australia and New Zealand 50 Nigeria and South Africa 52 Brazil, Chile and Mexico 54 Greece, Italy and Spain
56 About the authors
57 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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