Global wealth stands on opposite sides of financial and political crises

Zurich (awp) – Global financial wealth grew double-digit to $530 trillion in 2021. It is expected to rise another $80 trillion through 2026, according to a survey conducted by Boston Consulting Group (BCG) released Thursday.

In Switzerland, assets rose 5.5% year-on-year to $4.1 trillion. By 2026, the Swiss fortune should reach 4600 billion, the publication describes. With an annual growth of 3.2% to 1900 billion, national fortunes would increase more than cross-border fortunes.

The rest of the world is experiencing stronger growth, according to the survey. The growth rate of private wealth reached +10.6%, or $26 trillion, for the first time in decades, “driven by the strength of stock markets and the increase in demand for real assets,” specifies the latest release from the BCG.

This 22nd edition of the annual report on the global wealth management industry explains that despite inflation and the Russian-Ukrainian conflict, “wealth development is resilient with a positive growth rate,” even “the strongest growth in two decades,” said Anna Zakrzewski, global head of BCG’s Wealth Management department.

Non-traditional wealth managers currently manage up to $1 trillion in cryptocurrency-related wealth, and the cryptocurrency market cap could grow four to five times by 2030.

Hong Kong likely to overtake Switzerland in 2023

Geographically, the study reports that Asia-Pacific will maintain the highest rate of growth, with asset values ​​projected to grow by 8.4% per year by 2026. If this percentage persists, the region would generate nearly a quarter of the world’s private wealth in five years.

Wealth in the Middle East and Africa could be the biggest overall growth jump with a compound annual growth rate (CAGR) of 5.4% through 2026. On the other hand and over the same forecast period, North America could see slower wealth growth with an estimated CAGR of 4.7% (9.1% over the past five years). The same is true in Western Europe, where asset growth slowed from 4.5% to 4%.

In fact, the BCG study predicts “the end of Switzerland’s 200-year dominance as the hometown controlling the largest amount of cross-border private wealth. Honk Kong is likely to overtake Switzerland by 2023,” the statement said.

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