The rich is getting poorer, a clear sign of a shifting economy experts say.
The latest Global Wealth Report cited that Swiss banks UBS and Credit Suisse said $11.3 trillion of private wealth was lost in 2022.
In 2022, the U.S. lost 17,260 members of the ultra rich class— those with a net worth above $50 million—more than any other country in the world.
“Growth by middle-income countries will be the primary driver of global trends,” said Nannette Hechler-Fayd’herbe, the bank’s chief investment officer for EMEA and global head of economics and research, and Richard Kersley, managing director of EMEA securities research.
They continued, “We estimate wealth per adult to reach $110,270 in 2027 and the number of millionaires to reach 86 million, while the number of ultrahigh-net-worth individuals is likely to rise to 372,000 individuals.”
This comes in response to The Federal Reserve’s move to aggressively hike interest rates to their highest level in 22 years to deflate inflation. Until that happens, our wallets will likely continue to suffer.
As Fortune points out, although the world’s richest lost some of their wealth, the middle class has grown their share.
“Overall, America’s wealthiest individuals saw their share of the country’s wealth contract, while the bottom 50% saw their slice of national wealth get bigger,” the outlet said.
It continued: “Although almost 1.8 million Americans lost their millionaire status in 2022, the report found that median wealth per adult rose by $14,460 to $107,740—suggesting improved financial circumstances for a typical American.”