The Credit Suisse Global Wealth Report 2021 suggests that the COVID-19 pandemic dropped the wealth of Indian adults by 6.1 percent in 2020.
The impact of the COVID-19 pandemic and policymakers' response to global wealth is depicted in the Global Wealth Report-2021. The report evaluated the financial holdings of adults in 200 countries, totaling 5.2 billion people. The analysis suggests that the wealth of adults in India dropped to 6.1 percent in 2020.
The report states only six countries had overall wealth decreases of more than $100 billion, with India being one of them. The loss in India was $594 billion. Brazil, which lost $839 billion, was the other country that lost more than $500 billion.
India's number of millionaires has also decreased. While possessing 1 percent of the world's dollar millionaires, India lost 66 percent of its millionaires. In the category of ultra-high net worth individuals, India was placed 6th internationally in 2020.
Despite the pandemic, Credit Suisse estimates that global wealth climbed by $28.7 trillion to $418.3 trillion by the end of 2020. Total wealth climbed by 7.4 percent in current U.S. dollars, while wealth per adult increased by 6.0 percent. The fall in the value of the U.S. dollar, on the other hand, contributed 3.3 percentage points to the increase.
According to the International Monetary Fund, global GDP will reach USD 93.9 trillion in April 2021, just USD 1.5 trillion less than the pre-pandemic estimate. Low-and middle-income nations will also play a key role, contributing to 42 percent of global growth despite having only 33 percent of the present wealth.
India's total wealth was $12,833 billion, the change in real wealth was down by -594(-4.4 percent), and the change in wealth per adult was -6.1 percent. (Page number 7, Table 1).
"In real terms, the average wealth level in India in 2020 was at a level seen in the United States 70 years ago. In the next five years, wealth per Indian adult will surge past $20,000, a rise of over 40 percent," said Anthony Shorrocks, economist and the author of the Global Wealth Report 2021 at Credit Suisse reports Business Standard.
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