Global Wealth Forecast 2027: UBS and Credit Suisse Predict a 38% Surge to $629 Trillion

According to the 2023 Global Wealth Report by UBS and Credit Suisse, global wealth is projected to soar by 38%, reaching an unprecedented $629 trillion by 2027. This positive outlook follows a challenging 2022, which marked the first global wealth decline since 2008, with a 2.8% drop equivalent to $11.3 trillion.

Highlights to Know

• Global wealth is expected to climb to $629 trillion by 2027.
• The year 2022 saw a rare 2.8% decrease in wealth, the first since the 2008 financial crisis.
• Market losses in 2022 were primarily driven by the United States, Japan, China, Canada, and Australia.
• While wealth per adult declined by 3.6%, the global median wealth actually increased by 3% in 2022.

Regional Wealth Dynamics

The report highlights that wealth losses were concentrated in affluent regions like North America and Europe, which together experienced a $10.9 trillion reduction. The United States led these losses, followed by Japan, China, Canada, and Australia. Despite these setbacks, Switzerland maintains its position as the country with the highest wealth per adult, followed by the U.S., Hong Kong, Australia, and Denmark. In terms of median wealth, Belgium, Australia, Hong Kong, New Zealand, and Denmark top the list.

Real Estate's Steady Performance

Despite a 3.6% decline in wealth per adult to $84,718, driven in part by the U.S. dollar's strength, real estate and other non-financial assets demonstrated resilience amid rising interest rates in 2022. Contrasting the dip in wealth per adult, global median wealth saw a 3% increase, underscoring the stability of tangible assets.

Looking ahead to 2027, emerging middle-income markets are expected to be key drivers of wealth growth. Average wealth per adult is forecasted to reach $110,270, with the global millionaire population expanding to 86 million and ultra-high-net-worth individuals (UHNWIs) numbering around 372,000.

Wealth Trends Across Demographics

In 2022, Generation X and Millennials in the U.S. and Canada demonstrated relative resilience, though they still faced overall wealth declines. African-Americans' wealth remained largely stable, while non-Hispanic Caucasians experienced decreases. Notably, Hispanics saw a 9.5% increase in wealth, attributed primarily to their higher ownership of housing assets.

Wealth inequality showed signs of improvement, with the top 1% of the global population holding 44.5% of total wealth, down from previous years. The number of U.S. dollar millionaires worldwide fell by 3.5 million to 59.4 million in 2022, excluding 4.4 million "inflation millionaires" who would lose millionaire status if adjusted for inflation.

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