Millions become millionaires during COVID pandemic
Published: 01:32 PM, 23 June 2021
More than five million people worldwide became new millionaires in 2020 despite the massive economic damage caused by the Covid-19 pandemic; Photo: Collected
More than five million people worldwide became new millionaires last year, despite the massive economic damage caused by the Covid-19 pandemic.
While many poor people in the world have become poorer due to the pandemic, the number of millionaires in the world has increased by 5.2 million to 56.1 million, informed Credit Suisse, an investment banking company.
According to thier report, the amount of wealth in the world has increased by “7.4 percent”.
Overcoming stock market losses, and especially rising house prices has played a key role in their becoming millionaires.
Researchers say that the issue of wealth growth is a very different one from the economic damage caused by the pandemic.
Anthony Shorrocks, an economist and author of the Global Wealth Report, said the coronavirus pandemic had a short-term impact on global markets, but by the end of 2020 most of it had been overcome. The wealth of the world’s richest people “has not only remained stable” amid the danger but has also increased in the second half of the year. “But the wealth gap between adults has widened further in 2020,” he mentioned.
Shorrocks, however, said some issues may be “amended overtime” in the future. For example, if the “bank interest rate rises again, then the value of the assets will fall again”.
The number of people who had at least $10,000 and $0.1 million at the beginning of the 21st century has now tripled. The number of such people was 507 million in 2000, the number stood at 1700 million by 2020.
Credit Suisse’s chief investment officer, Nannette Hechler-Fayd'herbe, said: “There is no denying the role that the world’s governments and central banks have taken in reducing interest rates for businesses and individuals most affected by the pandemic. This is why the pandemic has prevented a major crisis in the world.”
He said the reduction in interest rates by central banks was probably the biggest reason. This is one of the main reasons why the “share price has gone up, the house price has gone up and as a result, the overall wealth of an individual has increased” in our opinion.
He said the decline in interest rates on bank loans worldwide has had a direct impact on share prices and houses or apartments, for this, the amount of personal wealth of the people has also increased.
Source: BBC Bangla