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TOP 1% OWN HALF GLOBAL WEALTH

World Wealth has reached a record $263 trillion but is concentrated in fewer hands. The richest 1 percent have accumulated more wealth, and own almost 50 percent of it, which could trigger recession, according to Credit Suisse.

The Credit Suisse Global Wealth Report, warns that the “abnormally high wealth income ratios” may spark a recession, as high disparity leads to economic friction.

Global wealth has grown to a record $263 trillion in mid-2014, $20.1 trillion more, and an 8.3 percent increase, over mid-2013. Household wealth has more than doubled since 2000, when the same report calculated it at $117 trillion. According to the Report, a person needs just $3,650 – including the value of equity in their home – to be among the wealthiest half of world citizens. However, more than $77,000 is required to be a member of the top 10% of global wealth holders, and $798,000 to belong to the top 1%.

“Taken together, the bottom half of the global population own less than 1% of total wealth. In sharp contrast, the richest decile hold 87% of the world’s wealth, and the top percentile alone account for 48.2% of global assets,” said the annual report, now in its fifth year.

The report also found that the UK was the only country in the G7 to have recorded rising inequality in the 21st century.
Its findings were seized upon by anti-poverty campaigners Oxfam which published research at the start of the year showing that the richest 85 people across the globe share a combined wealth as much as the poorest 3.5 billion of the world’s population.

As of 2014, The World's Wealth Is Reportedly In Fewer Hands

As of 2014, The World’s Wealth Is Reportedly In Fewer Hands

“These figures give more evidence that inequality is extreme and growing, and that economic recovery following the financial crisis has been skewed in favor of the wealthiest. In poor countries, rising inequality means the difference between children getting the chance to go to school and sick people getting life saving medicines,” said Oxfam’s head of inequality Emma Seery.

Leading the money trail is the United States, dubbed ‘Land of Fortunes’ by the report, which again boasts the highest average wealth. It is home to 34.7 percent ($91 trillion) of global wealth. Europe’s portion comes in a close second with 32.4 percent, followed by India and China’s 23.7 percent share, and then the 18.9 percent concentrated in the Asia-Pacific region.

North America has the highest average wealth and is also the world’s leader in GDP, which the report estimates grew by $12.9 billion in 2013.

Wealth in the US and Europe was driven by a rather spectacular year on the stock exchanges. Since the financial crisis of 2008, the US has added $31.5 trillion in household wealth. In the last year alone the stock market increased in value by 22.6 percent.

Global Wealth Distribution According To Credit Suisse

Global Wealth Distribution According To Credit Suisse

Germany, Canada, and France all experienced huge spurts in capital markets, gaining more than 30 percent.

Much of the world’s “new money” is coming from China and developing nations. Between 2000 and 2014, emerging markets accounted for 11.4 percent of wealth.

China now has more people in the top 10% of global wealth holders than any other country.
China now has more people in the top 10% of global wealth holders than any other country.

China now has more people in the top 10% of global wealth holders than any other country.

China now has more people in the top 10% of global wealth holders than any other country.


“As we noted last year, Asia and particularly China will account for the largest portion of newly created wealth among the emerging markets.”

A FEW SURPRISES

Other emerging players on the international scene, according to Credit Suisse, are Russia, Brazil, India, Indonesia, South Africa, and Turkey.

The conclusion of the report offers predictions for 2019, where the authors suggest global wealth will grow by 40 percent and reach $369 trillion, but emerging markets will account for 26 percent, more than double what they do now.

The number of millionaires worldwide is projected to blossom from 35 million today to 53 million in 2019.

Will you be one of them?