Britain now has 2.5m dollar millionaires as global wealth soars despite pandemic
Booming financial markets pushed up asset values so much that 1pc of the global population - more than 56m people - are now dollar millionaires, according to Credit Suisse’s Wealth Report.
Despite the economic carnage wrought by the pandemic and some significant market turmoil, prices of shares and houses have typically risen sharply, after central banks and governments pumped money into the economy.
Overall global household wealth rose by $28.7 trillion (£20.5 trillion) in 2020 to end the year at $418.3 trillion, the investment bank said - an increase of 7.4pc.
Per adult, that is a rise of 6pc to a record high of $79,952.
When it comes to millionaires, about 5.2m people were added to the ranks of those with a net worth in seven figures, taking the total to 56.1m.
It means having $1m is no longer enough to be counted in the ranks of the global 1pc, the annual Wealth Report found.
The UK has almost 2.5m dollar millionaires, a jump of 258,000 on the year.
The median British adult has $131,520, a rise of more than $8,000 on the year. It puts the Brits just behind the French and just ahead of the Canadians.
The US has the largest share of millionaires, accounting for 39pc of the global total, followed by China with 9pc, Japan at 7pc and Germany’s 5pc. The UK has 4.4pc of the total.
While those with assets have enjoyed an increase in their values, Covid had a devastating effect on jobs, particularly in countries without the ability to offer generous furlough schemes, making life harder for those with little.
“Where government transfers and other support such as government-backed furlough schemes have not been implemented, the economic impact of the pandemic on employment and incomes in 2020 are likely to have damaged the lowest groups of wealth holders, forcing them to draw down their savings and/or incur higher debt,” said Credit Suisse.
“In contrast, the top wealth groups are relatively unaffected by reductions in the overall level of economic activity and, more importantly, they have also benefited from the impact of lower interest rates on share prices and house prices.”
