Global wealth has declined for the first time since 2008, causing millions to fall from "millionaire" status, according to this year's "Global Wealth Report" from UBS and Credit Suisse economists.
In 2022, North Americans saw a total wealth decrease of 4.5 percent, with wealth per adult dropping 5.3 percent. The report attributes this, in part, to a rise in Americans' and Canadians' disposable income during the COVID-19 pandemic. The drawdown of these "excess savings" added $100 billion per month to U.S. spending in 2022, slowing wealth accumulation. Plus, Americans' gross assets fell 3 percent over the course of the year, while their debt rose 5.5 percent.
Financial favor primarily swung from the rich; over the course of the year, 1.77 million Americans lost millionaire status. Another 17,260 fell from the "ultra-high-net-worth" bracket, which encompasses those with net worth over $100 million.
In the U.S., white Americans took the brunt of the fall; Black Americans' wealth remained steady, while Hispanics' saw a 9.5 percent increase. Thus, overall wealth inequality dropped, according to the report.
However, the report projects global wealth will take an upswing, forecasting a 38 percent increase over the next five years. It also anticipates the U.S. will see a 16 percent rise in millionaires by 2027.