The number of the wealthiest individuals in the world decreased in 2022, with the value of their wealth falling by the largest factor in a decade, according to a global survey by consultancy Capgemini.
According to the study, this phenomenon was driven by a downturn in stock market indices.
The number of wealthy people in the world – defined by Capgemini as those with disposable cash excluding their primary residence of more than $1 million – fell by 3.3% in 2022 to 21.7 million, the firm calculated in a study released on Thursday.
Logically, the value of their wealth too has fallen, with an estimated total wealth of $83,000 billion down 3.6% on the previous year.
“This represents the biggest decline in ten years, due to macroeconomic and geopolitical uncertainties,” Capgemini points out in its report, which assessed 71 countries and uses a statistical census system and a graphical representation known as the Lorenz curve as its methodology.
The outbreak of war in Ukraine and its global consequences, as well as soaring inflation and rising central bank interest rates, have made 2022 a particularly difficult year economically.
Not stonks
Stock market indexes fell sharply last year: the CAC 40 index lost 9.5%, the Nasdaq in the United States plunged 33%, and the S&P 500 index, bringing together the top 500 US companies, fell 20%.
“There is bound to be a correlation” between changes in stock market indices and changes in wealth because wealth is increasingly made up of financial assets, Elias Ghanem, Director of Financial Research at the Capgemini group, told AFP.
Some of the biggest fortunes saw a marked slowdown in the growth of their wealth last year, from the world’s second-richest man and LVMH boss Bernard Arnault to Facebook founder Mark Zuckerberg or the l’Oréal heiress Françoise Bettencourt Meyers, according to Forbes magazine’s real-time fortunes index.
Related News
- World's richest man loses €10 billion in one day
- LVMH becomes first European business to top $500 billion
In detail, fortunes located in North America saw the biggest decline in value at -7.4%, followed by those in Europe (-3.2%) and Asia-Pacific (-2.7%), according to the study.
In contrast, those located in Africa, Latin America and the Middle East grew their fortunes, Capgemini notes.
These were driven by strong performances in the oil and gas sectors, whose prices soared with the outbreak of war in Ukraine and the sanctions imposed on Russia by the West.
