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Credit Suisse report: ‘Despite Covid, wealth of Indian adults rises marginally in 6 months’

Over the first half of 2020, while average wealth rose by only 1.7 per cent, Credit Suisse estimated that the full rise for 2020 will be 5-6 per cent and 2021 will see growth of about 9 per cent.

By: ENS Economic Bureau | Mumbai | Updated: October 23, 2020 10:16:59 am
The country had 9,07,000 adults in the top 1 per cent of global wealth holders, which is a 1.8 per cent share, it said.

The average wealth of Indian adults rose marginally by $120 (about Rs 8,800) to $17,420 (Rs 12.77 lakh) at end-June 2020, as against $17,300 as of December 2019, showing some growth despite the Covid pandemic and lockdowns, Credit Suisse said in a report.

Over the first half of 2020, while average wealth rose by only 1.7 per cent, Credit Suisse estimated that the full rise for 2020 will be 5-6 per cent and 2021 will see growth of about 9 per cent. The country had 9,07,000 adults in the top 1 per cent of global wealth holders, which is a 1.8 per cent share, it said.

With 4,593 ultra-high-net-worth individuals in the country as of end-2019, India came in fourth after the US, China and Germany. India had approximately 912,000 millionaires, accounting for 2 per cent of 51.9 million millionaires globally as at end 2019. “Household wealth in India is dominated by property and other real assets, although financial assets have grown over time, now forming 22 per cent of gross assets. In 2019, non-financial assets rose by 12.5 per cent compared to 8.6 per cent growth in financial assets, Credit Suisse Global Wealth Report said.

“Annual growth of wealth per adult averaged 9.7 per cent over 2000-2019 using current exchange rates, and 12.1 per cent with constant exchange rates,” it said.

Anthony Shorrocks, economist and report author, said: “Given the damage inflicted by COVID-19 on the global economy, it seems remarkable that household wealth has emerged relatively unscathed. Wealth acts as a form of self-insurance that households can draw upon when times are hard. Initially, the impact of the pandemic was felt mainly via the sharp worldwide decline in equity prices.”

In Asia Pacific, there were 45,920 ultra-high-net-worth adults with net worth exceeding $50 million as at end 2019. Asia Pacific is the highest contributor of household wealth. Total household wealth was $167,271 billion in June 2020, 42 per cent of the global total of $400,180 billion, Credit Suisse said.

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