Global wealth drops for first time since 2008

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Global wealth fell last year for the first time since the financial crisis of 2008, according to an annual report released Tuesday.

The Global Wealth Report issued jointly by Credit Suisse and UBS found total private wealth declined by 2.4% to $454.4 trillion, and wealth per adult fell 3.6% to $84,718 by the end of 2022.

The annual Global Wealth Report, released Tuesday, found wealth worldwide fell in 2022 for the first time since 2008. (iStock / iStock)

The analysis determined much of the decline was due to appreciation of the U.S. dollar against several other currencies and noted the losses were heavily concentrated in wealthier regions, such as North America and Europe, which together made up most of the decline at $10.9 trillion combined.

«Much of the decline in wealth in 2022 was driven by high inflation and the appreciation of the U.S. dollar against many other currencies,» said economist Anthony Shorrocks, an author of the report. 

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«Financial assets contributed most to wealth declines while non-financial assets — mostly real estate — stayed resilient, despite rapidly rising interest rates,» Shorrocks said. «But the relative contributions of financial and non-financial assets may reverse in 2023 if house prices decline in response to higher interest rates.»

Homes in Centreville, Md., April 4, 2023.  (Nathan Howard/Bloomberg via Getty Images / Getty Images)

In market terms, the U.S. showed the greatest losses, followed by Japan, China, Canada and Australia.

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The report said