Business World

Saturday 21 July 2018

Revealed: The country with the biggest household wealth gain recorded this year

(AP)
(AP)
Ellie Donnelly

Ellie Donnelly

The biggest household wealth gain globally recorded over the past 12 months was in Poland, where household wealth increase by 18pc.

The increase in wealth was driven mainly by rising equity prices, according to the latest Global Wealth Report from Credit Suisse.

Overall global wealth has risen by 6.4pc in the past 12 months.

Europe followed an identical patter, with wealth across the continent also rising by 6.4pc during the 12 month period.

Switzerland continued to top the table in terms of both average and median wealth per adult in 2017 and since the turn of the century wealth per adult in Switzerland has risen by 130pc to $537,600.

Most of the rise in wealth in Switzerland since 2000 has been due to appreciation of the Swiss franc against the US dollar, the report found.

However, comparing wealth across all countries, the United States continues to be the global leader.

In the past year, the US generated more than half of the total global wealth, adding $8.5tn to the total global wealth aggregation of $16.7tn.

"So far, the Trump Presidency has seen businesses flourish and employment grow, though the ongoing supportive role played by the Federal Reserve has undoubtedly played a part here as well, and wealth inequality remains a prominent issue," Michael O'Sullivan, CIO for International Wealth Management at Credit Suisse, said.

However the report has found that global inequality has continued to increase.

Overall the top 1pc of wealthy people in the world now own 50.1pc of all household wealth in the world, up from 45.5pc in 2000.

There are now 3.5 billion people, or 70pc of all adults in the world who own less than $10,000.

In particular the report found that millennials – those born between early 1980s and the early 2000s – face especially difficult circumstances compared to previous generations, with high unemployment, stricter mortgage rules, and increasing income inequality among the factors holding millennials back in many countries.

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