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Rich Lose 10% of Wealth in 2022

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The Knight Frank advisory center showed, according to a study it conducted, that the world’s richest people lost 10% of their fortune in 2022 after their investment portfolios were affected by the Ukrainian crisis and inflation.

Considered to be among the “richest of the rich,” meaning they each have a net worth of at least $30 million, the study found that the total wealth of these people “decreased by ten percent in 2022, which is a decrease of about ten thousand one hundred billion dollars. “.

Liam Bailey, global research expert at Knight Frank, said: “Last year, the Ukraine crisis exacerbated the European energy crisis and inflation has already accelerated. As a result, 2022 has witnessed one of the largest interest rate spikes in history. .”

The center confirmed that “the wealth of the top 40 percent increased in 2022, but the trend is mostly negative”, and this is not “surprising” because a large number of central banks have raised interest rates to curb inflation, which has negatively affected investment portfolios .

The center added that Europe saw the biggest decline if its wealth decreased by 17%, followed by Australia, New Zealand, Papua New Guinea and neighboring islands (-11%) and the Americas (-10%), while how Africa recorded a decline. by 5% and Asia decline by 7%.

The think tank report stated that: “significant impact on exchange rates” and “unprecedented dollar strength driven by a firm commitment to the Federal Reserve, the U.S. central bank, to move forward in one of the fastest-rise episodes in history.”

And the center warned that “if the global economy remains highly risky” in 2023, “the atmosphere in the markets will change rapidly” with “real opportunities in global real estate markets” as this year we are expected to reach a turning point in terms of interest rates. .

According to the center, 69 percent of the richest investors expect their portfolios to grow this year.

Source: AFP.

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