Over 3.5 million people lost 'dollar millionaire' status last year: Report

For the very first time since the 2008 financial crisis, global household wealth plunged as the interest rates ascended and inflation remained tenaciously elevated.

However, the numbers project a slightly hopeful narrative.

According to the annual Credit Suisse and UBS global wealth report, the grand total of all the personal wealth all over the globe dropped 2.4% to $454.4 trillion.

Considerably that was because of losses in stock and bond markets, which disproportionately impact more affluent people.

However, global median wealth, which is a more significant indicator that depicts how a typical person is progressing, actually ascended 3 percent in the year 2022.

The exhaustion of wealth faced by the wealthier made the world lose about 3.5 million millionaires.

As per the UBS annual wealth report, that came out on Tuesday (August 15), the number of adults, who were in possession of assets worth more than $1 million descended from 62.9 million at the end of 2021 to 59.4 million at the end of 2022.

According to the Swiss bank, global wealth was affected by high inflation and the descent of numerous currencies against the dollar.

In the United States, the number of millionaires fell by 1.8 million to 22.7 million. However, there still are more millionaires in the United States than in any other country.

China is second on the list with 6.2 million millionaires.

In spite of the drop, the report revealed that there were four times as many dollar millionaires as there were at the turn of the century.

In the United Kingdom, the number of millionaires dropped by 440,000 to 2.6 million, which is the third largest fall after Japan.

In Japan, it dropped from 3.2 million to 2.6 million. Australia witnessed the fourth largest decline, with 360,000 people losing the status of millionaires, bringing down the total to 1.8 million.

Paul Donovan, the chief economist at UBS, said: “The global economy is experiencing a period of astonishing economic alteration. The sweeping changes of the fourth industrial revolution represent the most dramatic structural upheaval in 250 years. Revolutions, it turns out, are revolutionary, social as well as economic relationships will be challenged by this process.”

As per another research for the Bloomberg billionaires index, the most affluent 500 people in the world lost a combined wealth of $1.4 trillion in 2022.

(With inputs from the agencies)

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