Only China and India saw gains in household wealth in the first half of the year, growing by 4.4% and 1.6%, respectively.
The pandemic that’s led to more than 1 million deaths globally has also led to a decline in individual wealth, yet household wealth largely held up and even increased in China and India.
That’s one of the main findings in Credit Suisse Group AG’s 2020 Global Wealth Report released Thursday. Thanks to government and central-bank actions to mitigate the Covid-19 fallout, global wealth rebounded from an initial slump in the first quarter of the year, adding $1 trillion by June after ending 2019 at $399.2 trillion.
“Given the damage inflicted by Covid-19 on the global economy, it seems remarkable that household wealth has emerged relatively unscathed,” said economist Anthony Shorrocks, one of the report’s authors, adding as a caveat that the findings are based on provisional household balance sheets for the second quarter issued by few countries.
Global wealth creation is expected to rebound next year as the economy recovers. The “main outlier” is North America, the report says, where the economy is hobbled by the “continued weakness due to the high prevalence of Covid-19” in the U.S. The region’s wealth per adult is projected to drop 5% this year, and remain near that level in 2021.