Oct 12, 2022 - Economy

Global wealth to decline more than 2% in 2022, new report says

Ivana Saric

The Charging Bull Statue is covered by snow in Lower Manhattan during a winter storm on February 1, 2021 — 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.

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Global wealth to decline more than 2% in 2022, new report says

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