The first significant destruction of wealth since the 2008 financial crisis is set to happen this year with global financial assets set to fall by more than two per cent.
According to the report, households could lose 10% of their wealth in real terms.
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Unlike the financial crisis, which was followed by a fairly swift rebound, the recovery this time, at least in the mid-term, looks gloomy.
It expects financial assets to grow at a slower rate than the past three years.
The turning point will be in2022. The world was turned upside down after the war in Ukraine because of inflation, energy and food shortages. The report said that households would feel the pinch.
The bull stock market is powered by monetary policy and looks like it will be the last one.
Adding two eurozones to the global financial pile is akin to the global financial assets growing by US$58 trillion.
In terms of wealth growth, North America led the way with a 12.5 per cent increase. The boom in the stock market contributed to most of the growth.
Debt grew during these years. Global household debt was about $50 trillion at the end of the year. The increase from 2020 is the largest in the last decade.
The geographical allocation of debt has changed, with the share decreasing in advanced markets and increasing in emerging markets. Asia's share of global debt has doubled over the past 10 years.
The rise in debt at the start of a global recession is worrying.
Over the past decade, household debt in emerging markets has ballooned at five times the rate of advanced economies.
The report said that there is a real threat of a debt crisis because of the structural challenges facing the markets.
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