Oct 12, 2022 - Economy & Business
Global wealth to decline more than 2% in 2022, new report says
The Charging Bull Statue is covered by snow in Lower Manhattan during a winter storm in Feb. 2021. Photo: Kena Betancur/AFP via Getty Images
Global wealth is on course to decline more than 2% in 2022, marking its first significant decrease since the 2008 financial crisis, according to a new report published by Allianz on Wednesday.
Driving the news: Noting that the war in Ukraine has “choked” the post-pandemic economic recovery, the report stated that 2022 will mark a definite “turning point.”
- “The last three years were nothing but extraordinary. It was a bonanza for most savers. Not only 2022 but the coming years will be different," Allianz wrote in a press release.
The big picture: With inflation rampant, "monetary tightening is squeezing economies and markets," the report stated.
- "In real terms, households will lose a tenth of their wealth," it added.
- However, unlike the financial crisis of 2008, which was followed by a "relatively swift turnaround," this time the outlook in the medium-term is "rather bleak."
- Assuming stock markets recover, the financial assets are expected to grow at about 4.6% until 2025, compared to the 10.4% in the last three years.