This Simple Chart Reveals the Distribution Of Global Wealth
The pandemic resulted in global wealth taking a significant dip in the first part of 2020. By the end of March, global household wealth had already declined by around 4.4%.
Interestingly, after much monetary and fiscal stimulus from governments around the world, global household wealth was more than able to recover, finishing up the year at $418.3 trillion, a 7.4% gain from the previous year.
Using data from Credit Suisse, this graphic looks at how global wealth is distributed among the adult population.
How is Global Wealth Distributed?
While individuals worth more than $1 million constitute just 1.1% of the world’s population, they hold 45.8% of global wealth.
| Wealth Range | Wealth | Global Share (%) | Adult Population |
|---|---|---|---|
| Over $1M | $191.6 trillion | 45.8% | Held by 1.1% |
| $100k-$1M | $163.9 trillion | 39.1% | Held by 11.1% |
| $10k-$100k | $57.3 trillion | 13.7% | Held by 32.8% |
| Less than $10k | $5.5 trillion | 1.3% | Held by 55.0% |
| Total | $418.3 trillion | 100.0% | Held by 100.0% |
On the other end of the spectrum, 55% of the population owns only 1.3% of global wealth.
And between these two extreme wealth distribution cases, the rest of the world’s population has a combined 52.8% of the wealth.
Global Wealth Distribution by Region
While wealth inequality is especially evident within the wealth ranges mentioned above, these differences can also be seen on a more regional basis between countries.
In 2020, total wealth rose by $12.4 trillion in North America and $9.2 trillion in Europe. These two regions accounted for the bulk of the wealth gains, with China adding another $4.2 trillion and the Asia-Pacific region (excluding China and India) another $4.7 trillion.
Here is a breakdown of global wealth distribution by region:
| Region | Total Wealth (US$B) |
Change in Total Wealth (US$B) |
Change % | Wealth Per Adult (US$B) |
Change % |
|---|---|---|---|---|---|
| North America | 136,316 | 12,370 | 10.0 | 486,930 | 9.1 |
| Europe | 103,213 | 9,179 | 9.8 | 174,836 | 9.8 |
| Asia-Pacific | 75,277 | 4,694 | 6.7 | 60,790 | 5.0 |
| China | 74,884 | 4,246 | 6.0 | 67,771 | 5.4 |
| India | 12,833 | -594 | -4.4 | 14,252 | -6.1 |
| Latin America | 10,872 | -1,215 | -10.1 | 24,301 | -11.4 |
| Africa | 4,946 | 36 | 0.7 | 7,371 | -2.1 |
| World | 418,342 | 28,716 | 7.4 | 79,952 | 6.0 |
India and Latin America both recorded losses in 2020.
Total wealth fell in India by $594 billion, or 4.4%. Meanwhile, Latin America appears to have been the worst-performing region, with total wealth dropping by 11.4% or $1.2 trillion.
Post-COVID Global Outlook 2020-2025
Despite the burden of COVID-19 on the global economy, the world can expect robust GDP growth in the coming years, especially in 2021. The latest estimates by the International Monetary Fund in April 2021 suggest that global GDP in 2021 will total $100.1 trillion in nominal terms, up by 4.1% compared to last year.
The link in normal times between GDP growth and household wealth growth, combined with the expected rapid return of economic activity to its pre-pandemic levels, suggests that global wealth could grow again at a fast pace. According to Credit Suisse estimates, global wealth may rise by 39% over the next five years.
Low and middle-income countries will also play an essential role in the coming year. They are responsible for 42% of the growth, even though they account for just 33% of current wealth.
The Biggest Companies By Market Cap in 60 Countries
Tech giants are increasingly making up more of the Fortune 500, but the world’s biggest companies by market cap aren’t so cut and dry.
Despite accounting for the largest market caps worldwide—with trillion-dollar companies like Apple and contenders including Tencent and Samsung—tech wealth is largely concentrated in just a handful of countries.
So what are the biggest companies in each country? We mapped the largest company by market cap across 60 countries in August 2021 using market data from CompaniesMarketCap, TradingView, and MarketScreener.
What are the Largest Companies in the World?
The world has 60+ stock exchanges, and each one has a top company. We looked at the largest local company, since many of the world’s largest firms trade on multiple exchanges, and converted market cap to USD.
But even more noticeable is the economic discrepancy. Apple and Saudi Aramco are worth trillions of dollars, while the smallest companies we tracked—including Panama’s Copa Group and Oman’s Bank Muscat—are worth less than $5 billion.
| Industry | Biggest Companies by Country |
|---|---|
| Financials | 16 |
| Technology | 12 |
| Energy | 6 |
| Materials | 5 |
| Communication | 4 |
| Consumer Cyclical | 4 |
| Utilities | 4 |
| Healthcare | 3 |
| Industrials | 3 |
| Consumer Staples | 2 |
| Real Estate | 1 |
Banks were the most commonly found at the top of each country’s stock market. Closely behind were oil and gas giants, mining companies, and former state-owned corporations that drove most of a country’s wealth generation.
But as more economies develop and catch up to Western economies (where tech is dominant), newer innovative companies will likely put up a fight for each country’s top company crown.
This content was originally published here.