"Global Adult 'Millionaire' Ratio Surpasses 1% for the First Time... Asset Prices Soar" (Summary)

Credit Suisse Aggregates in '2021 Global Wealth Report'
1.1% Millionaires Hold 45.8% of Global Assets...Polarization Deepens

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[Asia Economy Reporter Hyunwoo Lee] Credit Suisse, an international investment bank, announced that the proportion of so-called 'millionaires'?adults worldwide owning assets worth 1 million USD (approximately 1.1 billion KRW) or more?exceeded 1% for the first time ever last year. The surge in asset prices was influenced by large-scale economic stimulus measures implemented by countries in response to the COVID-19 pandemic. Concerns are also rising that the wealth disparity by income has worsened compared to before, potentially increasing social unrest in countries around the world.

According to the '2021 Global Wealth Report' released by Credit Suisse on the 22nd (local time), the number of individuals holding assets worth 1 million USD or more, combining both liquid and illiquid assets such as financial and real estate assets, reached 56.1 million last year, an increase of 5.2 million from the previous year. This corresponds to 1.1% of the global adult population. Credit Suisse explained that this is the first time the proportion of millionaires has exceeded 1% in history.

Despite severe economic recessions caused by strong quarantine and lockdown measures taken by countries amid the COVID-19 situation, asset prices surged, leading to an increase in the number of millionaires. Anthony Shorrocks, a Credit Suisse consultant who led the preparation of the report, stated, "Last year, the global asset value was estimated at 418.3 trillion USD, a 7.4% increase from the previous year, which seems completely disconnected from the economic impact of COVID-19." He added, "While COVID-19 had a severe short-term negative impact on global asset markets, the situation reversed from the second half of last year due to the liquidity supplied to the market, causing asset prices such as real estate to soar."

If the current trend of rising asset prices continues, the global asset value is expected to increase to 583 trillion USD by 2025. Credit Suisse also forecasted that the number of millionaires could increase by about 28 million from now, reaching 84 million.

However, Credit Suisse warned that wealth inequality is also deepening, which could become a factor for social unrest. The total assets held by millionaires, who make up only 1.1% of the global adult population, amounted to 191.6 trillion USD, accounting for 45.8% of global assets. In contrast, the total assets of 2.879 billion adults, representing 55% of the global adult population, were only 5.5 trillion USD, which is just 1.3% of global assets, Credit Suisse pointed out.