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Asian Billionaires Experience Sharpest Decline Globally in 2022 Amidst COVID and Ukraine Crisis

Altrata and Wealth-X, renowned sources of wealth and investment analysis, have jointly published the World Ultra Wealth Report. This comprehensive analysis focuses on ultra-high-net-worth individuals (UHNW), encompassing individuals with net worth exceeding $30 million.

The report highlights the growing size and influence of UHNW individuals over the past decade, amassing assets surpassing $45 trillion globally. However, the year 2022 witnessed a notable shift, with the number of individuals classified as UHNW experiencing a significant decline of 5.4%. This marks the first annual drop in UHNW figures in four years, representing the most substantial reduction since 2015.

One striking revelation from the report is the stark impact on Asian UHNWs in 2022. Asia, which boasts the second-largest population of UHNWs after North America, faced the most substantial decline in both population and cumulative wealth globally. The UHNW population in Asia plummeted by 10.9% to 108,370 individuals, comprising 27% of the world’s UHNW population. Concurrently, the total wealth held by Asian UHNWs fell by 10.6%.

Several factors have contributed to this decline among Asia’s UHNW community in 2022. China’s stringent lockdown measures, aimed at curbing the spread of COVID-19, were only lifted in December, creating economic disruptions. Additionally, the war in Ukraine had a cascading effect on Asian economies, leading to challenges in exports, consumption, regional supply chains, and sluggish stock markets. Notably, markets heavily reliant on technology stocks, such as South Korea and Taiwan, faced substantial setbacks.

Furthermore, the strengthening of the U.S. dollar has exerted pressure on the wealth of Asian UHNWs, contributing to asset market volatility across the region and heightened financial constraints. Regional central banks have been compelled to take measures to support local currencies amid these challenges.

North America, although home to the largest UHNW population globally, also experienced a significant downturn in 2022. The UHNW population in North America declined by 4% to 142,990 individuals, marking the first decrease in four years and the most considerable annual decline in a decade.

The World Ultra Wealth Report underscores the complex and interconnected factors influencing wealth distribution and dynamics globally. It serves as a testament to the resilience and adaptability required by individuals and nations alike in navigating the ever-evolving landscape of global wealth.

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