Total global wealth dropped in 2022 for the first time since the financial crisis of 2008, according to an annual report.
Wealth per adult fell 3.6 percent, or $3,198, to $84,718 by the end of last year, as worldwide wealth plunged following a boom in 2021.
Most of the losses were heavily concentrated in wealthier and more developed regions, such as North America and Europe, which lost a combined $10.9 trillion in 2022.
Financial assets saw the face the brunt of the decline last year, while non-financial assets, particularly real estate, remained resilient, despite rapidly rising interest and mortgage rates.
The report blamed the bulk of the financial losses on the appreciation of the U.S. dollar against other major currencies.
“Much of the decline in wealth in 2022 was driven by high inflation and the appreciation of the U.S. dollar against many other currencies,” said economist Anthony Shorrocks, an author of the report.
“Financial assets contributed most to wealth declines while non-financial assets—mostly real estate—stayed resilient, despite rapidly rising interest rates,” he said.
“But the relative contributions of financial and non-financial assets may reverse in 2023 if house prices decline in response to higher interest rates,” Mr. Shorrocks continued.
The United States faced the greatest loss, followed by Japan, China, Canada, and Australia.