The world is getting progressively richer. In 2023, global wealth bounced back from a slump in 2022...
Growing by 4.2% in USD terms after a 3% dip the previous year. This is as per a report by UBS.
This rebound was seen in Europe, Middle East and Africa.
What about India? Well, India didn't join the rebound.
In fact, the average wealth per adult in India actually shrank by over 1%.
But here’s the twist!
This report shows that median wealth growth in India was actually positive, rising by almost 6%. This means that while wealthier individuals saw their wealth decrease, those in lower wealth brackets experienced an increase.
But, if we go back to the global financial crisis of 2008, since then, the average wealth per adult in India has soared by over 320%. Even median wealth has seen a significant rise of 240%.
So, what makes up India's financial wealth?
Financial assets make up less than a quarter of gross wealth per adult. This is quite low compared to other regions. For instance, in the Asia-Pacific region, financial assets make up almost 60% of wealth, and in North America, it's nearly 70%. On the bright side, debt levels in India are also low, at under 9%, compared to almost 13% in the Asia-Pacific region.
UBS says that over the next five years, the number of dollar millionaires in India is expected to increase by over 20%, which means more than 190,000 new millionaires
Talking about the worlds richest, here are some eye-popping statistics
The top of the world’s wealth pyramid is made up of just 14 people who collectively own close to USD 2,000 billion. The next category is made up of just 12 individuals who own between 50 to 100 billion dollars.
So, how's the money going to move?
UBS' analysis shows that globally 83.5 trillion dollars of inherited wealth will be transferred within the next 20–25 years.