Global household wealth dropped 5.2% to $223trn from mid-2011 to mid- 2012 due to the economic downturn Credit Suisse latest wealth report has found.
Aggregate global household wealth fell by 5.2%.
Eurozone crisis causes dip
Credit Suisse’s third annual Global Wealth Report 2012 from its research institute found that economic uncertainties affecting the eurozone were responsible for the dip.
Researchers said that Europe was the largest contributor to the total global loss of $12.3trn, losing approximately $10.9trn.
While Asia- Pacific also lost a substantial amount, $1.4trn, the state of the US economy resulted in an appreciation of the US dollar against most other currencies.
Household debt up
The Zurich-based bank said that it also found that household debt had increased. From 2000-2012 debt rose 81% with the eurozone crisis as the main cause. It said that household debt was a significant part of net worth, i.e. typically 20-30% of wealth in advanced economies.
Credit Suisse’s research highlights its future expectations for household wealth:
– Wealth to increase almost 50% from $223trn in 2012 to $330trn in 2017
– The number of millionaires worldwide to reach 46m by 2017
– China to increase it’s stock of global wealth by $18trn surpassing Japan as the second wealthiest country in the world in five years time
– USA to keep it’s place at the top of the wealth league gaining $89trn by 2017
– The eurozone’s total wealth to only equal today’s level of wealth in the USA in the next five years, despite the fact that the eurozone has 16m more adults