Thursday June 10, 2021
Private wealth at a record high
Club of the super-rich is growing strongly
The coronavirus pandemic is severely affecting many economies. Unimpressed by this, those who already have a lot of money accumulate even more wealth. In Germany alone, private households own a total of almost 20 trillion dollars.
According to a study, people around the world accumulated more wealth than ever in the corona crisis year 2020. Private financial assets rose year-on-year by a good eight percent to the record value of 250 trillion dollars (around 205 trillion euros), according to an analysis by the management consultancy Boston Consulting Group (BCG). Rising stock exchange prices and growing savings contributed to this. For the first time, BCG also took property such as real estate or gold into account. Total assets minus debt were $ 431 trillion.
However, wealth is unevenly distributed. The club of the rich and super-rich in particular grew strongly. In Germany, private financial assets, including cash, account balances, stocks, pensions and life insurance, rose by around six percent to around nine trillion dollars. Real assets increased five percent to $ 13 trillion. After deducting debts, private households in Germany owned a total of just under $ 20 trillion.
“Traditionally, Germans prefer to invest in real estate rather than in securities, as the real value quota of almost 60 percent clearly shows,” analyzed Anna Zakrzewski, BCG partner and author of the study. “At the same time, investors in Germany save above average.” Many people kept their money together during the crisis, and the temporary closings in retail and travel restrictions put a brake on consumption. The number of dollar millionaires in this country increased according to the information by 35,000 to 542,000.
Germany in third place
The consultancy also attributed the increase to the development of the euro, which rose against the dollar. This was noticeable when converting to US currency. According to the figures, 26.6 million people worldwide had financial assets of one million dollars and more, 1.8 million more than in the pre-crisis year. The club of the super-rich, with financial assets of more than 100 million dollars, grew worldwide in the crisis year by 6,000 to around 60,000 members. According to the information, these own 15 percent of the world’s investable assets. According to this, 2,900 super-rich live in Germany, third place in the global ranking. The USA is at the top, followed by China.
The USA also led the global wealth ranking with $ 136 trillion, followed by Asia excluding Japan (111.9 trillion) and Western Europe (103 trillion). In view of the expected economic recovery after the Corona crisis, BCG expects steady growth in global private wealth in the coming years. By 2025, it should grow by an average of just under five percent annually to $ 544 trillion. According to the forecast, people in North America, Asia excluding Japan and Western Europe in particular will become richer.