Australians are now the richest people in the world, according to a Credit Suisse report

by NewsTimeOffice



A Swiss bank has announced that Australia is the richest country in the world with property prices soaring.

Credit Suisse’s annual Global Wealth Report for 2022 has revealed that Australia is the richest country in the world based on median – or median – wealth per adult.

The average Australian adult was worth $US273,900 ($A409,075), the bank found – making them wealthier than residents of the likes of Belgium, New Zealand, Hong Kong, Denmark, Switzerland, Canada, the Netherlands, the UK and France.

The report noted that average wealth – as opposed to average wealth – was higher in countries with lower income inequality, and that Australia particularly benefited from an increase in pandemic relief measures and a record-low 0.1 per cent interest rate.

A Swiss bank has announced that Australia is the richest country in the world with property prices soaring. Credit Suisse’s annual Global Wealth Report for 2022 has revealed that Australia is the world’s richest nation based on median – or median – wealth per adult (pictured is a woman on Sydney’s Bondi Beach)

When it comes to a different metric – average wealth – Switzerland was $696,000 ($A1.041 million) – making it the only country with millionaires in Australian dollars.

On this measure, Australia ranks fourth with average wealth of $550,110 ($A822,316) behind the United States at $579,050 ($A865,768) and Hong Kong at $552,930 ($A826,969). .

The Credit Suisse report covers 2021 when Reserve Bank interest rates were still at a record-low of 0.1 percent and national property prices rose 22.1 percent, marking the biggest annual increase since 1989.

Sydney’s median house price rose 29.4 per cent to $1.375 million last year as the equivalent price in Brisbane rose 30.4 per cent to $782,967, CoreLogic data showed.

Credit Suisse noted that property prices in Australia rose 31 percent, outstripping New Zealand’s 25 percent increase.

‘Housing markets were initially subdued during the peak of the pandemic, but recovered in the second half of 2020 and continued to improve in 2021,’ it said.

When it came to a different metric – average wealth – Switzerland was No. 1 at $696,000 ($A1.041 million) – making it the only country with millionaires in Australian dollars. On this measure, Australia ranks fourth with average wealth at $550,110 ($A822,316) behind the United States (New York’s Times Square, pictured) at $579,050 ($A865,768) and Hong Kong at $552,930 ($A826,969).

‘Low interest rates were probably one of the factors responsible for the booming housing market.

‘Unusual, no country saw house prices fall in 2021.’

In comparison, the Australian Securities Exchange’s benchmark S&P/ASX200 has risen 5.9 percent in the past year, with the Australian Securities Exchange’s benchmark S&P/ASX200 peaking in August 2021 before retreating.

The report also noted a large increase in disposable after-tax income in Australia following a pandemic welfare spending measure worth more than $300 billion as household savings surged during the lockdown.

‘Like other high-income countries we review here, disposable income in Australia rose significantly by 4.8 per cent due to pandemic relief,’ it said.

‘Increased savings had a positive impact on financial assets and led to some debt repayments.’

Despite being second in average wealth share, the United States was 18th in median wealth ranking. It ranks 16th, overtaking oil-rich Qatar (Shake, pictured).

Australia’s wealth inequality was low by international standards with the top 1 per cent of adults owning 21.8 per cent of wealth.

By comparison, in the United States, the top 1 percent has a 35.1 percent share of wealth.

So despite being second in average wealth share, the US was 18th in median wealth ranking.

This dropped oil-rich Qatar to 16th place.

Credit Suisse predicted that interest rates around the world will rise in 2022 and high inflation, as a result of Russia’s invasion of Ukraine, will hamper wealth creation in the coming years with government debt, as a proportion of gross domestic product, at the highest level since World War II.

‘Higher inflation could reduce real global wealth in 2022 and beyond,’ it said.

The United States added the most household wealth last year, followed by China, Canada, India and Australia.

Credit Suisse’s median asset table

1. Australia: $73,900 ($A409,075)

2. Belgium: $267,890 ($A400,197)

3. New Zealand: $231,260 ($A345,466)

4. Hong Kong: $202,380 ($A302,324)

5. Denmark: $171,170 ($A255,701)

6. Switzerland: $168,080 ($A251,023)

7. Canada: $151,250 ($A225,923)

8. Netherlands: $142,990 ($A213,591)

9. United Kingdom: $141,550 ($A211,440)

10. France: $139,170 ($A208,021)

11. Norway: $132,480 ($A198,021)

12. Japan: $120,000 ($A179,341)

13. Taiwan: $113,940 ($A170,239)

14. Italy: $112,140 ($A167,550)

15. Spain: $104,160 ($A155,637)

16. Qatar: $100,010 ($A149,436)

17. Sweden: $95,050 ($A142,025)

18. United States: $93,270 ($A139,389)

19. Korea: $93,140 ($A139,218)

20. Singapore: $93,130 ($A139,203)

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