FRANKFURT, Oct 12 — Household wealth is set to fall over two per cent worldwide in 2022 after three years of strong growth, a turning point caused by soaring inflation, German insurance giant Allianz said today.
Last year, global financial assets grew by 10.4 per cent, reaching €233 trillion (RM1,057 trillion), according to Allianz’s annual report that examines household wealth in almost 60 countries.
The growth in household wealth — which includes cash deposits, pensions savings and other investments — was driven by bullish markets.
But in 2022, rampant inflation including soaring energy prices fuelled by the Ukraine war, and rising interest rates will hit households hard.
Global financial assets are set to decline by more than two per cent, the first significant drop since the global financial crisis in 2008, the report found.
In real terms, households will lose a 10th of their wealth, it said.
“2021 brings an era to an end,” said Ludovic Subran, chief economist of Allianz.
“The last three years were nothing but extraordinary — it was a bonanza for most savers. Not only 2022 but the coming years will be different.”
Warnings are mounting that global growth will slow further next year due to myriad crises, with the IMF on Tuesday downgrading its forecasts. — AFP
