More than 5 million people become millionaires despite the epidemic

The coronavirus epidemic has caused misery, economic damage around the world, but it is also good for the rich, with an estimated 5.2 million people becoming millionaires last year, while at least $ 50 million, their number has almost doubled.

The Credit Suisse report shows that the total global wealth accumulated by households increased by about 28.7 thousand dollars in 2020, when central banks flooded the financial markets with cheap money, inflating asset prices.

As a result of higher valuations of shares և residential property, the total assets of households, including property, including debt, reached about $ 418.3 billion. The growth was equivalent to 4.1% growth based on a stable currency. Slightly below the annual average of the last two decades, only when the world economies were struggling with the health crisis և closing restrictions.

“The difference between what happens to family wealth and what happens in the wider economy can never be sharper,” the Credit Suisse report said. It found that the richest get the most out of their asset inflation policy responses, and that the gap between the rich and the poor in many countries is widening.

The combined wealth of individuals with a net worth of at least $ 1 million has nearly quadrupled since 2000 to $ 191.6 tons, while their share of world wealth has risen from about 35 percent to 46 percent.

About 2.9 billion people, equivalent to 55% of all adults, had previously had a net worth of $ 10,000. “The wealth gap between adults has widened around the world in 2020, as it has in many countries,” says an article co-authored by economists Anthony Shorrox, James Ames Davis and Rodrigo Luberas.

According to the study, at the end of 2020 the world had $ 56.1 million millionaires, 5.2 million more than last year. About a third of new millionaires come from the United States.

Although about 90 percent of millionaires had net worth of less than $ 5 million, it is estimated that $ 7 million is more than that. At its highest, 215,030 had net worth of more than $ 50 million, up from 173,620 a year earlier.

“It will be a very high growth any year, but it is especially shocking in a year when there are socio-economic shocks,” the authors wrote. “Of course, the nature of the policy response to the epidemic has had a big impact.”

Millionaires are rarely left in India, Indonesia, Russia, one in a thousand, and China is also relatively rare, one in 200. That compares with 8 percent of the US population and 15 percent of Switzerland. Credit Suisse’s methodology included housing assets as well as investment assets.

The countries most affected by the coronavirus are among the countries with the largest expansion of net household wealth. The study found that incomes were highest in North America and Europe, where total wealth grew by about 10 percent.

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