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.
On June 22nd, Credit Suisse Research Institute published its 12th edition of the Global Wealth Report showing continued wealth growth across the world.
The study found out that 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 percent and wealth per adult rose by 6 percent to reach another record high of USD 79,952.
Overall, the countries most affected by the pandemic did not fare worse in terms of wealth creation.
The report paints some interesting facts about wealth distribution in Africa. Here are a few findings on wealth and its distribution plus some bonus stats on the wealthy in Africa. The thread was prepared by one Twitter user.
1. The average wealth per adult in the wealthiest continent (North America) is 66 times that of the poorest (Africa). Africa’s wealth per adult is USD 7,371 whereas, in North America, the wealth per adult is USD 486, 930.
2. In regards to the increase in wealth per person in 2020, Switzerland had the biggest gain at USD 70,000. This increase in wealth per person for Switzerland is more than the actual wealth per person for either Africa, Asia Pacific, India, and Latin America.
3. Turning to the broader distribution of wealth across countries and regions, the huge disparity in average wealth levels is well illustrated by the World Wealth Map (shown below). Nations with high wealth per adult (above USD 100,000) are located in North America, Western Europe, and among the richer parts of East Asia, the Pacific, and the Middle East, with a sprinkling of outposts in the Caribbean.
One step below, the “frontier wealth” range of USD 5,000– 25,000 per adult is a heterogeneous group that covers heavily populated countries such as India, Indonesia, Iran, and the Philippines, plus most of Latin America and leading sub-Saharan nations such as South Africa. Fast-developing Asian countries like Cambodia, Laos, and Vietnam also fall within this category. Countries with average wealth below USD 5,000 comprise the final group, into which most of central Africa falls.
4. At the country level, Switzerland has the highest average wealth per adult at USD 673,900. This is followed by the US and Hong Kong (SAR) The top 20 countries have an average wealth above USD 238,000 per adult.
5. Only 1.1 percent of world adults have wealth above a million dollars. This one-percenter group accounts for 45.8 percent of total world wealth. The bottom half (55 percent) of the world’s adult population accounts for only 1.3 percent of total wealth.
6. The US has the largest portion of global dollar millionaires at 39 percent 4 countries (US, China, Japan, and Germany) account for 60 percent of all dollar millionaires.
7. For Ultra High Net Worth (UHNW) individuals, the US has more than 100,000 of them, followed by China and Germany. UHNWs are split into 3 categories of people. Those with a wealth of USD 50 to 100 million, then 100 to 500 million, and those above half a billion dollars.
8. Within Africa, Nigeria’s average wealth per person (USD 6,451) is less than the continent average (USD 7,371) Meanwhile, the average wealth per person in South Africa (USD 20,308) is almost 3 times the continent average.
9. Lastly, among the wealthiest in Africa, 255,000 people are in the top 1 percent global group. Looking broader, 4.6million are in the top 10 percent global group. This means only 0.34 percent of Africa’s population is in the top 10 percent global wealth group.