Global Markets

Global wealth grows to over $530 trillion

Global wealth shot up to new levels of $530 trillion (or N217.8 Quadrillion @N411/$) in 2021. A MoneyTransfers data presentation revealed a 10.6% increase from 2020 when it was $479 trillion. The value represents the most significant yearly rate in the past decade.

MoneyTransfers’s CEO Jonathan Merry said this about the report: “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, that won’t hinder world wealth growth.”

The world’s total wealth will continue to increase for the next several years. Research findings point to the world’s total wealth growing by almost $80 trillion in the next five years.

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. That would end the Swiss domination that had lasted for more than 200 years.

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 see a 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. That said, both areas will continue to witness a rise in their respective levels of prosperity.

Additionally, the data from MoneyTransfers indicates that traditional investing is growing at three to five times as fast as sustainable investing. Sustainable investments may constitute as much as 17 percent of privately invested wealth by 2026. 

With the traditional investment model, investors put their money into an asset that carries risks commensurate with expected returns. In other words, traditional investing takes your money and makes it work for you. On the other hand, sustainable investing balances traditional investing with environmental, social, and governance-related (ESG) insights to improve long-term outcomes.

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 gone up, affecting most industries.

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