Global Wealth Report 2023

Measured in dollars, net private wealth declined by US$11.3 trillion (tn) to US$454.4tn by the end of 2022 (-2.4% annually). This marked the first decline in global wealth since 2008. Wealth per adult also declined by 3.6% annually to US$84,718, with much of this decline attributed to the appreciation of the U.S. dollar against many other currencies. On a constant exchange rate basis—meaning, isolating the effects of exchange rate fluctuations—total wealth and wealth per adult would have grown by 3.4% and 2.2%, respectively. These figures represent the lowest increase in wealth at constant exchange rates since 2008. Applying the same exchange rate analysis and considering the effects of inflation, the result reflects a real wealth loss of 2.6% in 2022. In detail, financial assets contributed most to the decline in wealth last year, while non-financial assets (mainly real estate) remained resilient, despite the accelerated increase in interest rates.

In terms of regional performance, the global wealth loss was concentrated largely in wealthier areas such as North America and Europe, which together lost US$10.9tn. Meanwhile, the Asia Pacific region recorded losses of US$2.1tn, while Latin America was an outlier, with a total increase of US$2.4tn, driven by an average exchange rate appreciation of 6% against the US dollar. The United States led the list of losses in 2022, losing US$5.9tn, in comparison to a US$19.5tn increase the previous year. This marked the first break in a remarkable sequence of gains dating back to the 2008 global financial crisis. Japan, China, Canada, and Australia similarly posted losses of more than US$1tn. On the other end of the spectrum, the largest wealth gains were recorded in Russia, Mexico, India, and Brazil. In terms of wealth per adult, Switzerland continued to lead the list with US$685,230, followed by the United States with US$551,350, and Hong Kong with US$551,190.

By demographics, the non-Hispanic Caucasian population in the U.S. saw their wealth decline by approximately 4.5%, while the African-American population emerged from the recession almost unscathed. Additionally, Hispanics achieved a 9.5% increase in wealth, owing to their higher holdings of real estate assets compared to financial assets.

The increase in wealth inequality during the pandemic reversed in 2022. The share of wealth owned by the world’s richest 1% experienced a reduction, although it remained slightly above the 2019 level. Despite this segment owning approximately 46% of total global wealth, global wealth inequality has decreased in this century due to faster growth achieved in emerging markets, especially in China. Other figures suggest that the world’s highest net worth individuals in dollar terms fell by 3.5 million over the past year to 59.4 million. Lastly, the ultra-high net worth (UHNW) group with wealth above US$50 million saw a decrease of 22,490 members. North America accounted for 81% of this decline.

Projections indicate that global wealth will increase by 38% in the next five years, reaching US$629tn in 2027, driven by the growth of middle-income countries. Conversely, wealth per adult could reach US$110,270 in 2027, and the number of the wealthiest individuals could reach 86 million, while the number of UHNW individuals could rise to 372,000 (currently at 243,060 individuals).

Annual change (%) in real global household wealth and its components

* The graph was assembled using smoothed exchange rates.

Source:  UBS

Change in household wealth by region in 2022

Source:  UBS