Global private financial assets hit record
According to a study conducted by the German multinational insurance company Allianz for its annual report on global wealth, people around the world are richer than ever.
Despite the pandemic that has plunged the global economy into disarray, the gross financial assets of private households around the world reached 200 trillion euros (A318.5 trillion dollars) for the first time in 2020, announced Allianz on Thursday, translating into an astonishing 9.7% growth in one year.
Allianz economists expect the trend to continue as well, and currently forecast 7% growth in global financial assets for 2021.
However, the study also suggests that the pandemic has helped exacerbate wealth inequalities – both between richer and poorer nations and within countries.
Already, some 84 percent of the workforce belongs to the richest 10 percent of the world’s population.
The main driver of growth over the past year has been increased savings, largely caused by the various bottlenecks, during which many people were unable to shop and travel as usual.
As a result, the total amount of savings in the world climbed almost 80% to a record high of 5.2 trillion euros in one year, Allianz said.
Money simply left in bank accounts nearly tripled in 2020, and global bank deposits rose 11.9%, hitting double digits for the first time.
After deducting debts, global financial assets of private households in the 57 countries studied increased by 11% in 2020 to reach a net total of 153.5 trillion euros.
The Allianz Global Wealth Report takes into account cash, bank deposits, securities, insurance claims and pension funds, but not real estate.