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Global wealth soared 10.6% to $530 trillion in 2021, compared to $479 trillion in 2020, according to a new report.
The value represents the most significant yearly rise in the past decade, said the MoneyTransfers data presentation.
MoneyTransfers’s CEO Jonathan Merry says: "We can attribute the rise to robust equities markets and a surge in consumer interest in purchasing real assets such as wine, art, and property. A lot is ongoing around the globe currently, from inflation to Russia's invasion of Ukraine, but that won't hinder world wealth growth.”
Against odds, wealth keeps growing
According to Boston Consulting Group’s Anna Zakrzewski, wealth development is resoundingly resilient. She adds that the growth rate will remain positive even in the face of geopolitical uncertainty.
MoneyTransfers anticipates that the Asia-Pacific area will continue to have the highest pace of increase in wealth over the next five years. Besides, the values of assets will increase at a compound annual growth rate of 8.4 percent until 2026. If this occurs, the region will be home to approximately one-quarter of the wealth in the entire world.
The site concludes that Hong Kong might receive more cross-border money. This would mean that Hong Kong could replace Switzerland as the global financial capital.
North American slow down
According to the analysis, the economic expansion rate in North America would slow down to 4.7 percent between now and 2026. On its part, Western Europe will decline to under 4 percent. In comparison, the average growth over the previous five years was 9.1 percent for the former and 4.5 percent for the latter.
Additionally, MoneyTransfers concludes that traditional investing is growing three to five times faster than sustainable investing. Sustainable investments may constitute as much as 17 percent of privately invested wealth by 2026.
The post-pandemic effect is a factor that’s slowing down the American economy. Besides, the Russia - Ukraine war worsened the situation; gas prices have increased, affecting most industries, it says.