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Wealth: Turnaround in interest rates is slowing down the rich – at least somewhat

2022-06-14T10:27:37.852Z


The club of dollar millionaires grew worldwide last year – including in Germany. However, according to a report, the interest rate policy of the central banks is likely to have a noticeable impact on the wealthy in the coming months.


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Sailing boat in front of villas on Lake Starnberg: the rich have always won

Photo: Ulrich Wagner / picture alliance / dpa

Regardless of whether it's a boom or a crisis - the number of rich people worldwide has risen continuously in recent years.

In 2021 more dollar millionaires were added and the wealthy increased their wealth significantly, as the consulting firm Capgemini has calculated.

But whether the development will continue this year is questionable.

In the past year, the wealthy around the world have benefited from rising share prices and the economic recovery following the 2020 corona crisis.

According to calculations by Capgemini, their assets rose by eight percent compared to the previous year to a record total of 86 trillion US dollars (around 82 trillion euros).

At the same time, the club of dollar millionaires grew, also in Germany, which is one of the three countries with the most wealth.

"However, our forecast for 2022 is much more cautious," said Capgemini expert Klaus-Georg Meyer with a view to the overall development.

Now the wind is turning

Interest rate increases by the central banks in the fight against high inflation weigh on the mood on the stock markets and depress stock prices.

This should also be noticeable among the rich: According to estimates by Capgemini, the wealth of people who have investable assets of at least one million dollars shrank by around 4 percent worldwide between the end of last year and the end of April 2022.

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Germany gains 100,000 millionaires

According to calculations, the club of dollar millionaires worldwide grew again strongly by 7.8 percent to 22.5 million members last year.

In Germany, almost 100,000 people or 6.4 percent were added.

A total of 1.63 million dollar millionaires were counted in this country.

"Things are steadily improving when we review the past few years," said Meyer.

According to the calculations, the total wealth of dollar millionaires in Germany rose by 7.4 percent to around 6.3 trillion dollars (around 6 trillion euros).

In addition to increased share prices, a higher savings rate and the real estate boom also contributed to this.

For comparison: According to Bundesbank figures, the financial assets of private households in Germany totaled around 7.61 trillion euros at the end of last year.

Cash and bank deposits, securities such as stocks and funds, and claims against insurance companies are taken into account, but not real estate.

According to Capgemini, Germany is still one of the countries with the most dollar millionaires.

The USA leads the way (7.46 million), followed by Japan (3.65 million).

China follows Germany in fourth place with 1.54 million wealthy individuals.

"It's a matter of time before China will overtake Germany," predicts Meyer.

Overall, 63.6 percent of all dollar millionaires worldwide are concentrated in these four countries.

The big winners are the super rich

Around the world, the strongest growth reported last year was among the super-rich, who have at least $30 million in investable assets.

Total assets grew by 8.1 percent.

The number of the super-rich increased by 9.6 percent to around 220,000.

Recently published studies on the subject come to a similar conclusion, even if the numbers are not identical due to differences in methodology.

Capgemini's annual World Wealth Report includes equities, fixed income, alternative investments such as private equity, cash, and real estate that is not used by the company.

This does not include collections or consumer goods.

The 2022 World Wealth Report covers 71 markets, representing more than 98 percent of global gross national income and 99 percent of global stock market capitalization.

Accordingly, Capgemini evaluates statistical data from various countries and international organizations such as the World Bank and asks wealthy people about their investment behavior as well as asset managers.

mmq/dpa

Source: spiegel

All business articles on 2022-06-14

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