Australians have once again been crowned the worldโs richest people based on median net worth by the Credit Suisse Global Wealth Report (2022).
Thanks to soaring asset prices, this yearโs magic number comes to a nice and round US$273,900, having added US$28,450 to the total between 2020 and 2021. As per Credit Suisseโs annual rankings, weโre followed closely by Belgium (US$267,890) and New Zealand (US$231,260), before the competition drops off a little more considerably with Hong Kong SAR (US$202,380), Denmark (US$171,170), Switzerland (US$168,080), etc.
In terms of mean net worth, we havenโt done too terribly in this regard, either. At US$550,110, weโve only been beaten by three other countries: Switzerland (US$696,600), the United States (US$579,050), and Hong Kong SAR (US$552,930).
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โAs in most other high-income countries we review here, disposable income in Australia rose significantly by 4.8% due to pandemic relief payments in 2020,โ explained the Credit Suisse Global Wealth Report (2022).
โPrivate consumption, on the other hand, fell by 6.7%. Combined, these trends led to a jump in the household saving rate from 15.6% to 24.9%. The increased saving had a positive effect on financial assets and also led to some repayment of debt.โ
Like the creatures of habit we are, property was/is still king around these parts, to the point where itโs a defining point of difference amongst the international sphere.
According to the Reserve Bank of Australia, over 95% of our countryโs housing is owned by households. Compare that to the US and Germany, where the same class of ownership hovers around 80% and 70%, respectively.
โThe overall composition of assets or wealth has not changed a great deal in Australia since 2000. The share of financial assets in gross assets was 39.5% in the year 2000 and 39.0% at the end of 2021.โ
But considering the domestic property market has been steadily cooling off since March 2021 (valuations are anticipated to decline by as much as 20%), as well as the recent strife weโve been experiencing with equity markets, donโt be surprised if Australia slips a position or two in Credit Suisseโs next edition.
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As for the matter of our millionaire (USD) population, that rarefied demographic within our sunburnt nation has swelled to 2.18 million, which apparently accounts for just 3.5% of the worldโs total market share.
Australia came in at #8, beaten by the US (24.48 million), China (6.19 million), Japan (3.37 million), the United Kingdom (2.85 million), France (2.80 million), Germany (2.68 million), and Canada (2.29 million).
Credit Suisse added: โWith limited GDP growth and the possibility that asset prices will subside from their peak values at the end of 2021, we foresee a 13 % rise in the number of millionaires in the United States during the next five years compared to a 97% increase (to 12.2 million) for China.
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โWe expect little or no change in the millionaire rankings of the countries with the next highest numbers of millionaires: Japan, the United Kingdom, France, Germany, Canada and Australia.โ
โHowever, some nations just below, including Korea, Taiwan (Chinese Taipei), India, and Hong Kong SAR are likely to narrow the gap, particularly India, where the number of millionaires could total 1.6 million in 2026 โ more than double the number today.โ
Australiaโs millionaire population is projected to increase by 35% between now and 2026, bringing the well-heeled headcount to 2.94 million by 2026.
โLooking forward, we remain watchful as to the impact of rising inflation, the inevitable increase in interest rates with the knock-on effect on the valuation of the two principal sources of wealth, housing and financial assets, underpinned by GDP [growth].โ
Michael Marr, Credit Suisse Australiaโs Head of Wealth Management
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Similar to the countryโs millionaires, weโre still considered relatively small fish when it comes to our ultra-high net worth population.
At the conclusion of 2021, Australia was where 4,630 one-percenters called home; with an additional 1,350 uber wealthy operators having crossed the US$100 million threshold over the past year.
For reference, when the Credit Suisse Global Wealth Report (2022) data was being sourced, there were 84,490 ultra-high net worth individuals, more than half of whom resided in North America.
Check out the complete breakdown below.
