Australia, New Zealand, and Sweden Experience Significant Wealth Loss in 2022

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Did Australia, New Zealand, and Sweden plunge into an economic abyss in 2022? The shocking wealth losses that left these nations reeling in our latest report.

The 2023 global wealth report by Credit Suisse has unveiled a tale of economic downturn, with Australia, New Zealand, and Sweden taking the hardest hits in 2022. 

The report, released last week by the Swiss-based financial giant’s research division, paints a grim picture of declining fortunes for these nations.

Australia, in particular, witnessed a dramatic decline in its average wealth per person, plummeting by an astounding AU$90,000 within a year. 

This alarming drop has raised eyebrows and prompted sharp criticism, with Alan Austin, a prominent commentator, squarely blaming the economic mismanagement of the Morrison Coalition Government.

The global economy, still reeling from the repercussions of the COVID-19 pandemic, faced further turmoil in 2022. 

The conflict in Ukraine disrupted trade, and inflation surged, leading to a 2.4% decrease in global wealth, totalling US$454.4 trillion (AU$709 trillion). 

Wealth per adult also dipped by 3.6% to US$84,718 (AU$132,300).

As international values are pegged to the U.S. dollar, countries with depreciating currencies suffer even more. 

Australia’s rollercoaster year reflects its transition from a government known for poor economic management to one now steering a recovery.

Australia’s Global Standing Drops

Australia’s mean wealth ranking has significantly hit, plummeting to fifth place globally at US$496,819 (AU$844,032). 

This marks the lowest order since 2008, starkly contrasting with its impressive second-place position from 2009 to 2014, trailing only Switzerland.

A concerning trend of wealth inequality continues to plague Australia. 

The report reveals that the share of the nation’s wealth held by the bottom 90% of the population has dwindled from 55.1% in 2012 to a meagre 47.6% in the past year. 

Meanwhile, the wealthiest 10%, notably the top 1%, have enjoyed the lion’s share of the economic pie.

The Gini coefficient, a measure of wealth distribution fairness, paints a bleak picture for Australia. 

In 2022, the country’s Gini coefficient rose to 66.3, a slight increase from 66.2 in the previous year. This trend has worsened since 2013, when the score was more favourable at 63.6.

A Glimmer of Hope on the Horizon

Despite the gloomy outlook for many nations in 2022, Credit Suisse’s report holds optimism. 

The authors project a substantial 38% increase in global wealth over the next five years. 

Middle-income countries are poised to drive 56% of this growth despite accounting for only 31% of global wealth.

The report notes, “Growth by middle-income countries will be the primary driver of global trends. Wealth per adult will increase by 30%, reaching US$110,270 in 2027.” 

The authors also highlight a positive trend, with fewer people having wealth below US$10,000.

With the years of perceived incompetent management behind them, Australians can look forward to a more promising future. 

Recent progress has been observed in various economic sectors, including economic growth, technology, employment, skilled migration, housing, tax evasion, overseas students, and support for people with disabilities.

The anticipation for next year’s wealth report and other economic assessments remains high as Australia and the world seek to understand the evolving landscape of global wealth and financial stability.

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