World wealth increased by 10.6% in 2021 and reached a record level of 530 trillion. It is expected to continue to grow in all regions, despite inflationary pressures and Russia’s invasion of Ukraine.
Strong capital markets and rising demand for assets such as real estate, wine and art are driving up demand, according to a report by the Boston Consulting Group.
About 80 trillion. New wealth dollars are likely to be created in the next five years.
“Wealth growth is extremely resilient and despite the geopolitical turmoil, the growth rate will remain positive,” said Anna Zakrzewski, head of BGG’s wealth management arm.
The Asia-Pacific region is expected to maintain the fastest growth rate of wealth, with the value of assets expected to increase by 8.4% on an annual basis by 2026.
If this percentage is maintained, then the region could reach a quarter of the world’s wealth.
That means Hong Kong could overtake Switzerland next year as the region that manages “the largest amount of private cross-border wealth,” the report said.
Wealth growth in North America will slow to 4.7% by 2026, up from a five-year average of 9.1%.
In Western Europe, wealth growth is expected to slow from 4.5% to less than 4%.
Source: Capital
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