Jan 25

Wealth in Latin America increases 3.9% in one year

Private wealth in Latin America rose 3.9 percent to $ 8.1 trillion between mid-2016 and 2017, according to a study by financial entity Credit Suisse released on Tuesday.

Globally, the study found that global wealth in private hands increased between mid-2016 and mid-2017 by 6.4 percent or $ 16.7 trillion, which represents the fastest pace of growth since 2012 and a global wealth of $ 280 trillion.

According to the work of the Swiss bank, the wealth per adult in Latin America is currently at the US $ 19.04 thousand, which represents an increase of 2.1%.

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By comparison, the global average is $ 56,500, representing an increase of 4.9% and a new record.

However, the gap between those who have the most and those who have the least globally is considerable, given that in the ranking of wealth distribution it can be seen that 3.5 billion people, equivalent to 70% of all adults in the have less than $ 10,000.

The study highlights that in Latin America there are currently 460 thousand people with more than the US $ 1 million, and projects that by 2022 will be 54% more, or 706 thousand.

Globally, there are 36 million millionaires today, after adding 2.3 million new ones in a year.

By countries in the region, Brazil has 164 thousand millionaires and is expected to increase by 81% by 2022, to 296 thousand.

In Mexico, there were 84 thousand millionaires in the middle of 2017, the number that should increase to 88 thousand within five years.

The Argentinians, meanwhile, have 30 thousand million of them, a figure that will increase by 127 percent by 2022, when there will be 68 thousand, according to the report.

North America and Europe account for 64% of the wealth of households, followed by the Asia-Pacific region (excluding China and India), China, Latin America, India and Africa.

The report analyzes in more detail the economies of Brazil and Chile and states in the case of the South American giant that the country has suffered a crisis that has diminished wealth per adult 35% since 2011.

Brazil is among the many countries in which the majority of citizens have a wealth of between US $ 10,000 and the US $ 100,000, but the inequality is relatively high.

Only 1% of the richest have 44% of the household’s wealth in the country.

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Wealth in Brazil amounts to the US $ 2.5 trillion and fortune per adult is currently the US $ 17,400.

In the case of Chile, one of the strongest economies in Latin America, the country has a wealth of US $ 700 billion and 57 thousand people with a fortune of more than US $ 1 million.

According to the Credit Suisse report, 79,000 adults are among the richest 1% in the world.

The wealth per adult in that country is $ 52,800, only “a little” below the world average and “relatively high” compared to most emerging market economies, “the study says.

Chile also has a smaller proportion of adults with a wealth of less than the US $ 10,000 than the world average (37% versus 70%) and also a percentage of adults slightly over the US $ 100,000 compared (8% compared to 9%).

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