Sometimes when people go about their businesses, there is always this question about what the future holds. While a few are optimistic about tomorrow, so many people are uncertain and worried about what their lives would be like in a few years.
One of the major fear is always about their financial status but a new research by Credit Suisse shows that there is nothing much to worry about. The investment bank report from Credit Suisse projects the net worth of an average adult at $100,000 by 2024.
Credit Suisse has a history of over 160 years. The company's expertise is in private wealth management and has delivered one of the most accurate analyses for the past 13 years.
The research bank predicts that irrespective of your current bank account balance, individuals' fortunes, including yours, will continue to grow internationally by 28% per adult in just under two years to come. The report also predicts that the number of millionaires will increase by 40% by 2026.
Presently, a large number of people have reached the upper echelon of wealth more than the previous years. The research assures that although a short recession may interfere with this data, it won't prevent a trajectory of wealth growth in two to five years to come.
Global Household Wealth Report by Credit Suisse
The thirteenth edition of the Global Wealth Report shows continued wealth across all regions around the world. However, household wealth growth was highest in North America and China, followed by Canada, India, and Australia.
In 2021, global wealth growth stood at 12.7%, which is considered the highest annual wealth ever recorded. In recent times, the total wealth per adult in most countries has reached $87,489.
"By 2021, global wealth totaled an estimated USD 463.6 trillion, which is an increase of 9.8% versus 2020 and far above the average annual +6.6% recorded since the beginning of the century. Setting aside exchange rate movements, aggregate global wealth grew by 12.7%, making it the fastest annual rate ever recorded," Credit Suisse reported.
Household Wealth Report in Low-Income Countries
The report shows that the largest economies in Africa, Nigeria, and South Africa, have the greatest household wealth in sub-Saharan Africa. Although both countries suffered economic impacts from COVID-19 19, Nigeria had less severity than South Africa.
The report added that in 2020, Nigeria's real GDP fell by 1.8% but South Africa fell by 6.4%. Nigeria was also able to rebound fairly and quickly from Covid-19 damage with a 2021 growth rate of 3.6%.
Even though South Africa's growth rate was higher at 4.9% in 2021, it was enough to repair the damage caused by COVID-19 19. In 2020, real private consumption fell by 1.0%, but in 2021 rebounded by 25.6%, while South Africa fell by 5.95% but rose by just 5.6% in 2022.
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By comparison, "wealth per adult was $21,601 in South Africa while Nigeria was 7,618 in 2021. Meanwhile, the average wealth of adults for the whole of Africa stood at 8,419," the report said.
The major challenge in most of Africa, especially, Nigeria is wealth inequality. The Gini coefficient for wealth for Nigeria in 2021 stood at 86.0 but 88.6 for South Africa.
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