The fortune of the super rich decreased 10% in 2022 as their investments were affected by increases in interest rates as a result of the war in Ukraine and of the inflationaccording to a study by the consulting firm Knight Frank.
The total wealth owned by these people “very wealthy”, defined as owning at least $30 million (including the value of their principal residence), “decreased 10% in 2022″, details this study published on Wednesday.
“Last year, the Ukrainian crisis fueled the European energy crisis and triggered inflation. As a result, 2022 saw one of the steepest hikes in interest rate history.”, detailed Liam Bailey, director of research at Knight Frank.
However, four out of ten very wealthy people “They saw their wealth increase in 2022, but the overall trend was negative, which is not surprising.e” because the increases in the rates of various central banks to deal with inflation weigh on investment portfolios, details the cabinet.
Europe experienced the biggest drop, with a -17% decline in these fortunes, followed by Australasia (-11%) and the Americas (-10%).
Africa and Asia, by comparison, suffered the smallest declines (-5% and -7%, respectively).
“Exchange rates have had a significant impact”while “The dollar’s strength was unmatched, fueled by the Federal Reserve’s unwavering commitment to one of the fastest rate hike cycles in history.” report continues.
Yes ok “significant risks remain for the global economy” in 2023, “Market sentiment will change rapidly with very real opportunities emerging in global real estate markets,” with an interest rate turning point expected this year, according to Bailey.
Source: AFP
Source: Gestion
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