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Large fortunes: in 2022, the biggest decline in wealth in ten years

2023-06-01T13:01:35.530Z

Highlights: The number of people whose assets, excluding their principal residence, exceed 900,000 euros decreased by 3.3% in 2022. The value of their wealth has also declined, with an estimated total wealth of 83,000 billion dollars (about 75,500 billion euros) North America experienced the largest decline in value with -7.4%, followed by those located in Europe (-3.2%) and Asia-Pacific (-2.7%) The outbreak of war in Ukraine and its consequences on the planet, as well as soaring inflation and rising central bank interest rates, have made 2022 a particularly difficult year economically.


The number of people whose assets, excluding their principal residence, exceed 900,000 euros decreased by 3.3%.


People with the highest wealth saw their number and the value of their wealth experience the largest decline in ten years last year. This is the result of an international study conducted by the consulting firm Capgemini.

The number of high net worth individuals worldwide, defined by Capgemini as people whose disposable money excluding a principal residence exceeds one million dollars (about 900,000 euros), fell by 3.3% in 2022 to 21.7 million people.

Logically, the value of their wealth has also declined, with an estimated total wealth of 83,000 billion dollars (about 75,500 billion euros), a decrease of 3.6% compared to the previous year.

The weight of the decline in stock markets

"This represents the biggest setback in a decade, due to macroeconomic and geopolitical uncertainties," Capgemini said in its report, which assessed 71 countries and uses a statistical census system and a graphical representation called the Lorenz curve as a methodology. The outbreak of war in Ukraine and its consequences on the planet, as well as soaring inflation and rising central bank interest rates, have made 2022 a particularly difficult year economically.

In addition, stock market indices fell sharply last year: the CAC 40 lost 9.5%, the Nasdaq in the United States plunged 33%, and the S&P 500, bringing together the 500 largest American companies, fell 20%. "There is necessarily a correlation" between the evolution of stock market indices and that of fortunes because wealth is increasingly made up of financial assets, said Elias Ghanem, director of financial research at Capgemini Group.

Some of the biggest fortunes themselves have experienced a sharp slowdown in their growth in 2022, from LVMH boss Bernard Arnault (owner of "Le Parisien" and "Aujourd'hui en France") to Facebook founder Mark Zuckerberg or L'Oréal heiress Françoise Bettencourt Meyers, according to Forbes magazine's real-time wealth index.

In detail, fortunes located in North America experienced the largest decline in value with -7.4%, followed by those located in Europe (-3.2%) and Asia-Pacific (-2.7%), according to the Capgemini study. Conversely, those in Africa, Latin America and the Middle East grew on the back of strong performances in the oil and gas sectors, whose prices soared with the outbreak of war in Ukraine and the sanctions imposed on Russia by the West.

Source: leparis

All business articles on 2023-06-01

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