Coronavirus impact on global wealth

US Individual Wealth Expected To Drop By 5% In 2020 While Indian And Chinese Households Get Richer

Not only has the coronavirus pandemic significantly crippled many economies around the world, but impacts to individual wealth have also been detrimental – especially in the US and Latin America.

According to the Global Wealth Report released by Credit Suisse, the coronavirus pandemic has caused individual wealth to decline across the globe, with some countries being hit harder than others. With respect to last year, global wealth increased by more than $36.3 trillion, meanwhile wealth per capita rose by 8.5% compared to 2018. This positive increase in wealth ultimately helped cushion the blow from the pandemic, in addition to the copious stimulus spending by governments and central banks.

The actions of governments and their respective central banks around the world shielded the worst of the coronavirus pandemic fallout back in the spring, causing global wealth to rebound by $1 trillion between the first quarter and second quarter of 2020. According to Credit Suisse economist Anthony Shorrocks, it is surprising that individual wealth was able to rebound relatively unscathed compared to the severity of the pandemic.

Since the beginning of the year, global wealth per adult declined from an average of $77,309 to $76,984. This means that millennials, along with the forthcoming post-COVID generation will be subject to diminished globalization and economic activity, in addition to subdued travel. The report found that India and China were the two only countries that saw increases in individual wealth in the first half of 2020, with growth of 1.6% and 4.4% respectively.

However, the gains to individual wealth will not be uniform across the world. According to Credit Suisse, the main outlier is the US economy, which continues to be decimated by soaring infection rates and the government’s inability to control the virus’s spread. As a result, the report forecasts wealth per adult to fall by 5% in 2020, and remain subdued until at least the following year. However, Latin America is projected to suffer the worst of the wealth declines, with a staggering 13% plunge in household wealth amid currency devaluations and severe losses in GDP levels.


Information for this briefing was found via the Global Wealth Report. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

First Majestic Posts Record Cash Flows In Q1 As Production Costs Fall

Brazil Potash Secures Funding In Support Of US$2.5 Billion Autozales Project

Related News

Effects of Coronavirus Felt By Canadian, US Markets

The price of gold is trending higher today while the S&P 500 index is down...

Friday, January 24, 2020, 03:35:51 PM

Rescue Bailouts for Airlines: Time to Bend Over, Taxpayers!

Much like the auto industry collapsing on its own oversupply of vehicles amid lack of...

Saturday, April 4, 2020, 08:30:00 AM

Initial Jobless Claims in the US Continue to Surpass Economists’ Forecasts

Although the US economy was beginning to show signs of a rebound, the positive sentiment...

Friday, June 26, 2020, 03:33:00 PM

China Anticipating its New Vehicle Sales to Fall by 10-20% in 2020

Although most auto manufacturing companies have returned to full production by now following a period...

Tuesday, July 14, 2020, 06:21:00 PM

Airbnb Facing Financial Difficulty, Lays off 25% of Workforce

As the coronavirus pandemic continues to ravage economies around the world, some industries are being...

Wednesday, May 6, 2020, 04:44:00 PM