Economic Gap, Between Rich and Poor, Widened Drastically Amid Pandemic.
According to 'The Guardian,' the global wealth gap widened amid the Covid pandemic, .
... as the rich profited on surging stock and house prices.
The annual Credit Suisse Global Wealth Report shows that the number of millionaires in the world swelled by 5.2 million during the pandemic.
The report shows how emergency interest rate cuts and government stimulus measures often benefited those least in need of state support.
As a result, the assets of those people grew in value despite the economic downturn.
At the same time, those with already lower incomes suffered job losses and a loss of income due to the pandemic.
For the first time in history, millionaires now account for over 1% of the global population.
In 2020, there were 56.1 million individuals with assets worth more than $1M.
The rise in wealth inequality was likely not caused by the pandemic itself, nor its direct economic impacts, but was instead a consequence of actions undertaken to mitigate its impact, primarily lower interest rates, Credit Suisse Global Wealth Report, via 'The Guardian'.
In 2020, global wealth grew by 7.4% to reach $418.3 trillion.
The US, Europe and China experienced the largest increases in wealth.
While overall wealth in Latin America and India declined.
Over the next 5 years, global wealth is expected to rise a further 39% to reach $583 trillion by 2025.
The number of millionaires is predicted to climb by nearly 50% to 84 million individuals.