Global Real Wealth Grows 8% In 2023 As Inflation Moderated, Shows UBS Report

The global real wealth outpaced nominal growth figures as it surged nearly 8.4%, thanks to a reduction in inflation as compared to the peak observed in 2022. It marks a reversal from historical trends since 2008, where real wealth grew at a slower rate than nominal figures, according to a report by UBS.

The Global Wealth Report 2024 revealed significant insights into the relationship between inflation and real wealth growth across global markets, highlighting both challenges and opportunities for economic stakeholders.

Despite inflation persisting, the moderation from previous highs contributed to a notable increase in real wealth growth across various economies, according to the report.

The report identifies stark differences in wealth performance among different regions. Several markets experienced a decline in average wealth per adult.

Cyprus saw the most significant contraction, with average wealth plummeting by more than 30%. Mexico and Kazakhstan followed with declines nearing 20% and over 17% respectively. Switzerland and Italy, with a dip of 6% and 4% respectively, also faced challenges in maintaining wealth levels.

Türkiye emerged as a standout performer, recording an extraordinary growth of over 157% in wealth per adult from 2022 to 2023. Qatar and Russia also posted impressive growth rates close to 20%, underscoring robust economic performances in these regions. South Africa and Israel showed substantial increases in average wealth at 16% and 14% respectively.

In the US, average wealth per adult grew by approximately 2.5%, demonstrating steady albeit moderate growth compared to Mainland China and Norway. The US led European markets with a nearly 10% growth, surpassing Denmark and Hong Kong SAR in wealth expansion.

The report's findings emphasise the critical role of inflation in shaping real wealth growth trajectories globally. While reduced inflation in 2023 bolstered real wealth gains, the effects of inflation continue to influence economic outcomes across diverse markets.