Global wealth rose 10.6% last year to reach an all-time high of $530 trillion U.S. and is forecast
to continue rising in all regions of the world despite inflationary pressures.
Strong equity markets and a surge in demand for real assets such as property, wine and art
drove the increase, according to a report by the Boston Consulting Group. About $80 trillion
U.S. of new wealth is likely to be created over the next five years.
Asia-Pacific is expected to maintain the fastest rate of wealth creation and growth, with asset
values poised to increase by a compound annual growth rate (CAGR) of 8.4% through 2026. If
that growth rate holds, the region could then hold one-quarter (25%) of the world’s wealth.
That could see Hong Kong overtake Switzerland next year as the jurisdiction managing the
largest amount of private cross-border wealth, according to the Boston Consulting Group’s
latest wealth report and forecast.
North American wealth growth will slow to 4.7% through 2026, compared to a five-year average
of 9.1%, the researchers estimate. In Western Europe, wealth growth is likely to slow from 4.5%
to less than 4%.
The report also noted that sustainable investing is growing three to five times as fast as
traditional investments, and by 2026 this asset class could account for as much as 17% of
privately invested wealth.
Based in Boston, Massachusetts, the Boston Consulting Group is one of the world’s three
largest management consulting firms.
