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Global Wealth Trends | Amidst Economic Shifts, Inequality Draws Closer

Global private wealth decreased by 2.4% to $454.4 trillion, primarily due to stock and bond market losses, disproportionately affecting wealthier individuals.

Global millionaire count dropped by 3.5 million since 2021, with the US losing 1.8 million millionaires. (Photo: Google)

Over the last year, global wealth trends saw a decline in household wealth due to increasing interest rates and ongoing high inflation.

According to an article published by CNN, in the past year, rising interest rates and persistently high inflation led to a decrease in global wealth trends, marking the first such decline since the 2008 financial crisis. However, this seemingly negative global wealth trends has a more positive underlying narrative.

Global wealth trends private wealth dropped by 2.4% to $454.4 trillion due to losses in stock and bond markets, impacting wealthier individuals more significantly.

Conversely, the global wealth trends median wealth, a more representative measure of typical individual prosperity, actually increased by 3% in 2022.

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This phenomenon has been dubbed “global wealth trends,” a “rich-cession,” where the average person experienced gains while many millionaires and billionaires suffered losses.

According to an article published by Flipboard, around 3.5 million fewer millionaires exist worldwide compared to “global wealth trends” in 2021, primarily in countries like the United States, which saw a decline of 1.8 million millionaires.

While the top 1% of households still control a considerable 44.5% of “global wealth trends” (down slightly from 45.6% in 2021), this shift in wealth distribution led to a slight improvement in inequality. The report suggests that the “global wealth trends” economy is undergoing substantial economic changes.

On a brighter note, Credit Suisse projects a 38% increase in “global wealth trends” over the next five years, reaching $629 trillion by 2027, with middle-income countries driving this growth. The average wealth per adult is expected to rise from $84,718 to $110,270 during this “global wealth trends” period.

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