The COVID-19 pandemic has led to over a million deaths globally and also caused a decline in individual wealth all over. However, the household wealth in India and China not only largely held up but even increased, according to the Credit Suisse Group AG’s 2020 Global Wealth Report released.
“Given the damage inflicted by COVID-19 on the global economy, it seems remarkable that household wealth has emerged relatively unscathed,” said economist Anthony Shorrocks, one of the report’s authors, adding as a caveat that the findings are based on provisional household balance sheets for the second quarter issued by a few countries.
The “main outlier” is North America, the report says, where the economy is hobbled by the “continued weakness due to the high prevalence of Covid-19” in the US. The region’s wealth per adult is projected to drop 5% this year, and remain near that level in 2021.
Only China and India saw gains in household wealth in the first half of the year, growing by 4.4% and 1.6%, respectively. Latin America suffered the most, with a 13% plunge, as currency devaluations aggravated losses in gross domestic product.
Wealth per adult slipped to an average $76,984 from $77,309 at the start of the year, the report found. Switzerland, the Netherlands, Taipei and Hong Kong saw gains, while Norway and the UK posted the biggest declines.