Global Wealth Report 2021: Wealth Gap Will Widen

The Allianz “Global Wealth Report” analyzes the financial assets and indebtedness of private households in almost 60 countries. The current edition with the numbers for 2020 has now been published.

Key results:

• The global gross financial assets  rose by 2020% in 9,7, reaching the “magic mark” of 200 trillion euros for the first time.
• The lockdowns drastically reduced consumption opportunities and led to the global phenomenon of "Forced savings". Fresh savings soared 78% to 5,2 trillion euros, an all-time high.
• 2020 are the private financial assets grew faster in the emerging markets (+ 13,9%) than in the industrialized countries (+ 10,4%).

“Long Covid” mainly affects poorer countries

• While many developing countries performed surprisingly well in the first year of the pandemic, there are many indications that the long-term consequences - from insufficient vaccinations and reorganized supply chains to digital and green transformation - could hit poorer countries in particular.
• Most likely, Covid-19 will Economic growth of these countries significantly longer than that of the industrialized countries.
• When state aid runs out, the direct consequences of the crisis - the loss of millions of jobs - will be felt again. In addition, the crisis has had massive adverse effects on the Education guided. Covid-19 is likely to be the case social immobility rather reinforce. The gradual disappearance of the middle class has only stopped temporarily. (Source: Allianz SE)

The degrowth movement, among others, questions whether the concept of growth is still sustainable. In the post "What is degrowth?" you can find out more about it.

Photo by Konstantin Evdokimov on Unsplash