Credit Suisse, "Despite COVID-19 Recession, 5.2 Million Millionaires Increased Last Year"

"Millionaires Surpass 1% of Global Adult Population for the First Time"
"Impact of Asset Price Surge... Actual Income May Have Decreased"

[Source: Credit Suisse 2021 Global Wealth Report]

[Asia Economy Reporter Hyunwoo Lee] Credit Suisse, an international investment bank, announced that despite the impact of COVID-19 last year, the number of so-called 'millionaires' worldwide holding assets worth over 1 million USD (approximately 1.1 billion KRW) increased by more than 5 million due to the surge in asset prices and the sharp decline in the value of the dollar. As a result, the proportion of millionaires relative to the global adult population has reportedly exceeded 1% for the first time.

On the 22nd (local time), Credit Suisse revealed in its '2021 Global Wealth Report (The Global Wealth Report 2020)' that the number of millionaires worldwide holding assets over 1 million USD increased by 5.2 million from the previous year to reach 56.1 million. Credit Suisse emphasized that this represents 1.1% of the global adult population, marking the first time the millionaire ratio has surpassed 1%.

Despite severe economic recessions caused by COVID-19-related quarantine and lockdown measures, Credit Suisse analyzed that the surge in asset prices was linked to the increase in millionaires. Anthony Shorrocks, a Credit Suisse consultant who led the report, explained, "The global asset increase in 2020 appears completely disconnected from the economic problems caused by COVID-19," adding, "The pandemic had a short-term sharp impact on global markets, but from the end of June, asset prices surged dramatically, reversing the situation."

According to Credit Suisse, the global asset value last year is estimated to have increased by 7.4% from the previous year to 418.3 trillion USD. If the current upward trend in asset prices continues, it is expected to soar to 583 trillion USD by 2025. Credit Suisse also forecasted that the number of millionaires could increase by about 28 million from now, exceeding 84 million.

Concerns are also growing that wealth inequality across global regions will deepen further. According to Credit Suisse, assets in North America increased by approximately 12.4 trillion USD last year. Europe saw an increase of 9.2 trillion USD, and China’s assets grew by 4.2 trillion USD, mainly centered around major economic powers. In contrast, Credit Suisse pointed out that India, where the COVID-19 situation worsened significantly, experienced a 4.4% decrease in asset size compared to the previous year, highlighting the deepening imbalance.