In the Global Wealth Report 2023, Credit Suisse and UBS assess the state of wealth and wealth of private individuals around the world. Per adult or per country, the results for 2022 are the same: wealth has declined. $11.3 trillion – or 2.4% – globally and $3,198 – or 3.6% per adult. According to one of the authors of the study, economist Anthony Shorrocks, this decline “can largely be attributed to high inflation and the appreciation of the US dollar against many other currencies.” And Luxembourg is no exception.
In 2022, Credit Suisse and UBS calculated that wealth per adult Luxembourger is $585,950, including approximately $244,973 in financial wealth, $450,808 in non-financial wealth, and $109,687 in debt. In 2021, this wealth per adult was estimated at $602,651 and therefore fell by just over 2.8%. The median wealth for 2022 per adult was $347,508. Impressive when we know that in Europe the gross wealth per adult is “only” 202,163 dollars.
The study also states that Luxembourg has a high proportion of people whose wealth exceeds one million dollars: 15.7%, compared to 3.9% in Germany, 5.6% in France or even 5.9% in Belgium. Despite this, the wealth held in Luxembourg represents only 0.1% of global wealth which at the end of 2022 amounted to 454.4 trillion dollars.
an increase of 38% over the next five years
If we go beyond the Grand Duchy, the Global Wealth Report shows that the United States tops the list of market losses in 2022, followed by Japan, China, Canada and Australia. On the other hand, the greatest increase in wealth was recorded in Russia, Mexico, India and Brazil.
If global wealth fell in 2022, “global median wealth, arguably a more meaningful indicator of the typical person’s situation, actually rose by 3% in 2022,” says UBS. The outlook is therefore favorable according to the wealth manager who estimates that “global wealth will increase by 38% in the next five years, to reach 629 trillion dollars by 2027” and specifies that “the number of millionaires will reach 86 million, while it is expected that the number of ultra high net worth individuals (UHNWI) will reach 372,000 people.