63 000 South Africans among top 1% of global wealth holders
Total wealth in Africa rises 6.3% with US, Europe up 10%, says Credit Suisse.
The Credit Suisse Research Institute today released its fifth annual Global Wealth Report, which finds that the number of wealthy South Africans increased slightly between 2013 and 2014, despite a decline in the South African currency during the same period.
The report estimates that 63 000 South Africans are members of the top 1% of global wealth holders and that 47 000 are USD millionaires. These numbers are up a little from 2013 despite a 5% fall in the rand, reflecting overall growth in wealth.
Household wealth in South Africa is largely comprised of financial assets, the report finds, which contribute 73% to the household portfolio. This reflects a vigorous stock market and strong life insurance and pension industries.
Giles Keating, Global Head of Research for Private Banking & Wealth Management, Credit Suisse, said: “The fifth annual Credit Suisse Global Wealth Report shows a USD 20.1 trillion rise in wealth to USD 263 trillion. North America and Europe stand out this year, with percentage gains exceeding 10% in both cases. Developing economies have lagged as a result of weaker asset prices and currency pressures.”
Credit Suisse Research Institute’s Markus Stierli said: “This year's report puts wealth inequality under the lens, and the findings show that inequality has tended to rise since 2008, particularly in developing economies. The financial crisis has acted as a breakpoint in inequality, as most countries were showing a flat or declining trend before 2007.”
Credit Suisse provides the most comprehensive and reliable source of information available on global household wealth. The analysis comprises the wealth holdings of 4.7 billion adults across more than 200 countries – from billionaires in the top echelon to the middle and bottom sections of the wealth pyramid, which other studies often overlook.
The report shows that South Africa’s average household wealth grew vigorously prior to the global financial crisis, tripling from USD 8 400 in the year 2000 to USD 25 800 in 2007. Growth was similar in constant exchange rate terms.
Since 2007, progress in South Africa has been slower. In constant exchange rate terms, wealth declined a little in 2008, but growth soon recovered and gathered pace in 2013-14. Depreciation of the rand greatly amplified the wealth drop in 2008. This was reversed the following year, but more recent declines in the exchange rate mean that wealth per adult in USD terms has still not regained its 2007 level.
To view the full press release click here. (228KB)
To view the full Global Wealth Report click here. (4MB)
