Home > business and economics, international > Credit Suisse Global Wealth Report 2012

Credit Suisse Global Wealth Report 2012

October 16, 2012

Credit Suisse Global Wealth Report 2012

Source: Credit Suisse

The Credit Suisse Global Wealth Report aims to provide the most reliable and comprehensive data on global household wealth, covering all components of wealth and spanning the entire wealth spectrum. Subdued economic growth and collapses in equity prices have made the past year a challenging one for wealth creation and preservation. In this article important aspects of the recent economic environment are reviewed.

The economic uncertainties of the past year – particularly those affecting Eurozone countries – have cast a large shadow over household wealth. Economic recession in many countries, combined with widespread equity price declines and relatively subdued housing markets, has produced the worst environment for wealth creation since the outbreak of the financial crisis. As a consequence, total global household wealth fell by 5.2 percent to 223 trillion US dollars between mid-2011 and mid-2012, the first annual decline since the financial crisis of 2007–2008.

However, prospects are not as gloomy as this result might suggest because the overall drop is attributable to the appreciation of the US dollar. Based on constant exchange rates, aggregate global household wealth actually rose by about 1 percent over the last year – not an impressive performance compared to recent years, but still better than expected, given the challenging economic environment.

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Categories: business and economics, international
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