The ultra-rich have seen their fortunes shrink by 10% in 2022, as their investment portfolios have been hit by rising interest rates, the fallout from the war in Ukraine and inflation, but optimism is at stake for this year , according to a study by the consulting firm Knight Frank.
The total wealth held by these “very wealthy” people, defined as owning at least $30 million (including the value of their primary residence), “decreased 10% in 2022, a drop of about $10.1 trillion “, details this study. posted on wednesday.
Four in ten very rich people have still “seen their wealth increase in 2022”, but “the overwhelming trend was negative” which is “not surprising” because rate hikes by several central banks to deal with inflation weigh on the investment portfolios, explains the firm.
The very rich in Europe bear the brunt
Europe experienced the largest decline, with a 17% drop in these fortunes, followed by Australasia (-11%) and the Americas (-10%). Africa and Asia, by comparison, suffered the smallest drops (-5% and -7% respectively).
However, if “significant risks to the global economy remain” in 2023, “market sentiment will change rapidly” with “very real opportunities emerging in global real estate markets,” and the turning point in interest rates is expected to interest this year, according to Liam Bailey. .
According to the Knight Frank study, 69% of wealthy investors expect to see their portfolio grow this year.
Source: BFM TV
