85 percent of financial assets are in the hands of the richest 10 percent.
Allianz, the global financial insurance and investment company, announced the 14th edition of its “Global Wealth Report.”
The report, which examined in detail the wealth and debt situation of households in approximately 60 countries, revealed that securities and insurance/pension assets decreased in 2022, while the value of deposits and real estate increased .
‘ASSET PRICES DECLINED’
The highlights of the report were as follows:
* 2022 was a terrible year for savers. Asset prices have fallen across the board. There was a 2.7 percent decline in global household financial assets globally. This figure was the sharpest drop since the global financial crisis (GFC) of 2008.
* But some asset classes suffered more than others. Securities decreased 7.3 percent and insurance/pension assets decreased 4.6 percent. New savings decreased 24 percent in 2022.
* Bank deposits grew strongly at 6 percent, largely in line with the long-term trend before the Covid-19 pandemic.
*In total, financial assets worth €6.6 trillion were lost, bringing total financial assets to €233 trillion at the end of 2022.
WEALTH INEQUALITY IS GROWING
* The richest 10 percent of the world’s population owned 85 percent of total net financial assets in 2022.
* While analysis of the national distribution of wealth has been disappointing, progress has only been made in a few countries, particularly those with highly unequal distributions, such as South Africa and Turkey. Instead, wealth distribution has worsened in many developing countries, including Brazil, Mexico, Russia, India and China.
* On the other hand, property owners continued to enjoy strong value increases in 2022. The increase in property prices in 2022 was 8.8 percent. However, the decrease in real estate demand due to the increase in interest rates will be reflected in the drop in housing prices in 2023.
Türkiye SECTION
Some details about Türkiye were also included in the report. Consequently, Turkey’s total gross financial assets amounted to $365 billion. While the annual increase in gross financial assets was 70.2 percent, the reason for this increase was stated to be high inflation. The amount of assets per capita was 4,310 euros.
While net financial assets in Turkey amounted to $273 billion, the annual growth of net financial assets was 74.7 percent. The amount of net financial assets per capita was 3,220 euros. Türkiye’s Gini coefficient was 0.76.
The index, which is a statistical measure of distribution intended to represent wealth inequality, approaching 1 represents complete inequality, while being 0 represents complete equality.