The world’s ‘ultra-high net worth individuals’ (UHNWIs) lost a cumulative wealth of $10 trillion or 10% of their net worth in 2022 due to global economic uncertainty, energy crisis and geopolitical situations, Knight Frank’s 17th edition of The Wealth Report reveals.
In Europe, they lost an average of 17% of their fortunes. Those in Australia recorded an 11% drop, and America shed 10%.
In comparison, Africa witnessed the smallest decline with 5%, followed by Asia and the Middle East at 7%, the report added.
According to Knight Frank, UHNWIs possess a net worth of $30 million or more, including assets.
“The fall in wealth is unsurprising given the dramatic pivot in monetary policy that culminated in the worst performance for the traditional blended portfolio since the 1930s,” said Liam Bailey, Knight Frank’s head of research.
“The Ukraine crisis fuelled the European energy crunch and supercharged already surging inflation. As a result, 2022 saw one of the sharpest upward movements in global interest rates in history, leading to economic conditions that Collins English dictionary neatly dubbed the ‘permacrisis’,” added Bailey.
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