In a joint release of the “Global Wealth Report,” UBS and Credit Suisse have revealed a significant shift in global household wealth due to the strengthening of the US dollar. For the first time since the 2008 global financial crisis, the report indicates a decline in net global household wealth in 2022.
The comprehensive report provides insights into the estimated wealth holdings of approximately 5.4 billion adults across nearly 200 markets. The findings shed light on the complex dynamics at play in the global wealth landscape.
In terms of current nominal U.S. dollars, the report discloses that the total net wealth of households experienced a contraction of $11.3 trillion, translating to a 2.4% decline, resulting in a cumulative value of $454.4 trillion by the close of 2022.
Breaking it down further, the average household wealth per adult witnessed a decrease of $3,198, marking a 3.6% dip to reach a figure of $84,718.
The driving force behind this downward trend, as highlighted by the report, is the appreciating value of the US dollar when compared to numerous other global currencies. This shift in currency valuations played a pivotal role in shaping the evolving landscape of global wealth.
As economies continue to adapt to changing financial dynamics, the “Global Wealth Report” offers a comprehensive analysis of the intricate relationship between currency fluctuations and the net wealth of households across the world.
