A study published by consultancy Knight Frank has confirmed that the world’s richest people will lose 10% of their wealth in 2022, with global research expert Liam Bailey saying: The war in Ukraine has exacerbated the European energy crisis, leading to a significant increase in inflation and interest rates , which negatively affected the investment portfolios of the rich, especially in Europe, while the majority of the rich expect their portfolios to grow in 2023.
“Last year, the war in Ukraine exacerbated the European energy crisis while inflation accelerated,” said Liam Bailey, global research expert at Knight Frank. “The result was one of the biggest interest rate hikes in history in 2022.” .”
Despite this, “in 2022, the wealth of the top 40% increased, but the trend was mostly negative, which is not surprising, since a large number of central banks raised interest rates to curb inflation, which negatively affected investment portfolios,” the report says. . to the center.
Europe saw the biggest drop with a 17% decrease in wealth, followed by the Australasia region i.e. Australia, New Zealand, Papua New Guinea and neighboring islands (-11%), and the Americas (-10%) . , while Africa recorded a decline of 5% and Asia a 7%.
There is a significant impact on exchange rates as well as “unprecedented dollar strength driven by a firm commitment to the Federal Reserve (the U.S. central bank) to move ahead in one of the fastest rate hikes in history,” according to the advisory center report. real estate markets as we are expected to hit a tipping point this year in terms of interest rates.” Also, according to the center, 69% of the richest investors expect their portfolios to grow this year.
