Global Wealth Grows Despite Continued Crises
Global wealth reached a record high of $530 trillion in 2021, fueled by strong equity markets and a surge in demand for real assets, says a report by Boston Consulting Group (BCG). ‘Global Wealth 2022: Standing Still Is Not an Option’ finds that despite geopolitical and economic destabilizers such as inflation and Russia’s invasion of Ukraine, approximately $80 trillion in new wealth is likely to be created over the next five years. In a notable industry shift, Hong Kong will probably overtake Switzerland in 2023 as the domicile managing the largest amount of private cross-border wealth, ending a run of more than 200 years of Swiss dominance. The report predicts that wealth assets will continue to rise in value in all regions. But Asia-Pacific will maintain the fastest rates of wealth growth, with asset values poised to increase by a compound annual growth rate (CAGR) of 8.4 per cent through 2026. If that rate holds, the region could be home to nearly one-quarter of the world’s wealth by 2026. In North America, wealth growth will be slower than in years past, with an estimated CAGR of 4.7 per cent through 2026, down from a prior five-year average of 9.1 per cent.