Covid-19: Why did the number of millionaires in the world grow during the pandemic?

The covid-19 pandemic has had a serious economic impact on many in the world, but not on r everyone. While the majority struggled to stay afloat others benefited. Why did the number of millionaires in the world grow during the pandemic?

According to an investigation by the Swiss financial consulting firm Credit Suisse, in 2020 the number of millionaires in the world increased by 5.2 million people and now exceeds 56 million worldwide, which means that last year around 1 % of adults worldwide became millionaires for the first time.

Credit Suisse considers that wealth creation was "completely separate" from the economic woes of the pandemic.

Jeff Bezos's net worth increased from $80 billion to $198 billion.

Anthony Shorrocks, an economist and author of the Global Wealth Report, said the pandemic had a "sharp short-term impact on global markets," but this "was largely reversed at the end of June 2020."

"Global wealth not only held steady in the face of such turmoil, it actually increased rapidly in the second half of the year," he explained.

Total global wealth grew 7.4%, according to the report.

Researchers have also seen that, since the turn of the century, the number of people with a net worth between $ 10,000 and $ 100,000 has tripled from 507 million people in 2000 to 1.7 billion in mid-2020.

They said the increase reflected the "growing prosperity of emerging economies, especially China, and the expansion of the middle class in the developing world."

Mark Zuckerberg increased his net worth from $50 billion to $120 billion

According to Nannette Hechler-Fayd'herbe, Credit Suisse's chief investment officer, government actions, and central banks during the pandemic - such as programs to deliver resources to the most affected individuals and companies or the reduction of interest rates - “have successfully prevented a large-scale global crisis ”.

"Lowering interest rates by central banks has probably had the biggest impact," she said.


 

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