A new report brings wealth inequality into glaring terms as it confirms the normal perception that the rich do keep getting richer but it also shows that some of the world’s poorest are faring much better than previous years.
Wealth inequality refers to the unequal distribution of assets within a population and a new research from Credit Suisse show that the problem is getting worse.
Researchers from Credit Suisse showed that the richest 1% now own even more wealth than they did a year ago. The richest 1% held 50.8% of the world’s wealth in 2016, which is a sizeable increase from the 2009 estimation of 45.4%.
The wealth inequality gets even more glaring when the richest 10% are considered instead. The richest 10% of the world’s adult population, hold 89% of all global assets.
That leaves just 11% for the rest of the world’s adult population to share. Credit Suisse researchers wrote;
“In recent years, there has been a growing sense that the economic recovery is shallow, and has not reached all layers of society. Evidence from our global wealth database supports this view.”
The report also shows that half the world’s adult population owns less than $2,222 and some 73% of the world’s adults have less than $10,000 in wealth, accounting for 2.4% of global wealth.
Michael O’Sullivan, chief investment officer for Credit Suisse’s wealth management division, however, notes that there may be some hope for the world’s poorest. According to him, the world’s poorest who live in places like Congo or Nigeria, are increasing their wealth at a greater clip than in other parts of the world.
According to him;
“These countries are interesting because the rate of change for many households is actually very rapid, …And if I think back to what happened in Indonesia for the last 15 years, where wealth has increased by six times in that period, you look at some of the African countries and wonder whether the same is possible?”
The report also showed that in general, the increase in wealth worldwide last year kept pace with population growth, growing by just 1.4% to $256 trillion.