Millions become millionaires during Covid pandemic

Millions become millionaires during Covid pandemic

jeanniejeanniejeannie.co.uk BLOG Friday 25th June 2021

THOUGHT FOR THE DAY

Millions become millionaires during Covid pandemic

More than five million people became millionaires across the world in 2020 despite economic damage from the Covid-19 pandemic.

While many poor people became poorer, the number of millionaires increased by 5.2 million to 56.1 million globally, Credit Suisse research found.

In 2020 more than 1% of adults worldwide were millionaires for the first time.

Recovering stock markets and soaring house prices helped boost their wealth.

Wealth creation appeared to be “completely detached” from the economic woes of the pandemic, the researchers said.

Anthony Shorrocks, economist and author of the Global Wealth Report, said the pandemic had an “acute short term impact on global markets”, but added this was “largely reversed by the end of June 2020”.

“Global wealth not only held steady in the face of such turmoil but in fact rapidly increased in the second half of the year,” he said.

Billionaires see fortunes rise by 27% during the pandemic.

‘Wealth increase of 10 men during pandemic could buy vaccines for all’.

However, wealth differences between adults widened in 2020, and Mr Shorrocks said if asset price increases, such as house price rises, were removed from the analysis, “then global household wealth may well have fallen”.

“In the lower wealth bands where financial assets are less prevalent, wealth has tended to stand still, or, in many cases, regressed,” he said.

“Some of the underlying factors may self correct over time. For example, interest rates will begin to rise again at some point, and this will dampen asset prices.”

Total global wealth grew by 7.4%, the report said.

Since the start of the 21st century, the number of people with wealth between $10,000 and $100,000 had more than tripled in size from 507 million in 2000 to 1.7 billion in mid-2020.

They said the increase reflected the “growing prosperity of emerging economies, especially China, and the expansion of the middle class in the developing world”.

Nannette Hechler-Fayd’herbe, chief investment officer at Credit Suisse, said: “There is no denying actions taken by governments and central banks to organise massive income transfer programmes to support the individuals and businesses most adversely affected by the pandemic, and by lowering interest rates, have successfully averted a full scale global crisis.”

She added: “The lowering of interest rates by central banks has probably had the greatest impact.

“It is a major reason why share prices and house prices have flourished, and these translate directly into our valuations of household wealth.”

But she added that these interventions “have come at a great cost”.

“Public debt relative to GDP has risen throughout the world by 20 percentage points or more in many countries.

“Generous payments from the public sector to households have meant that disposable household income has been relatively stable and has even risen in some countries.”

Ms Hechler-Fayd’herbe said a “major reason” why share prices and house prices had “flourished” was due to the lowering of interest rates by banks, which, she added, translated “directly into our valuations of household wealth”.

TOP TWENTY OF THE DAY

TOP TWENTY MOST EXPENSIVE PLACES IN THE WORLD

The world’s most expensive cities to live in have been revealed in a new report.

Mercer’s 27th annual Cost of Living Survey analysed data from 209 cities across five continents to compile its latest research.

It measures the comparative cost of more than 200 items, from accommodation and transportation to food and household items, in order to rank each city.

Ashgabat in Turkmenistan was name most expensive, followed by Hong Kong and Beirut in Lebanon.

Although Asia claimed six of the top 10 priciest cities, three of the most costly destinations were all in Switzerland.

Zurich, Geneva and Bern ranked fifth, eight and 10th respectively.

London just made the top 20, coming in 18th place, having climbed one rank from the previous year’s survey.

The only other European city in the top 20 was Copenhagen, Denmark (16).

Other UK destinations in the ranking included Birmingham (121), Aberdeen (128) and Glasgow (131).

Cities in the US have dropped in this year’s list, mostly due to currency weakness between March 2020 and March 2021, despite the rising inflation of goods and services.

New York (14) ranked as the most expensive city in the US, dropping eight positions since last year, followed by Los Angeles (20), San Francisco (25), Honolulu (43) and Chicago (45). Winston Salem (151) remains the least expensive US city surveyed.

The survey also revealed the world’s least expensive cities to live in.

Bishkek in Kyrgyzstan was named the cheapest, followed by Lusaka in Zambia and Tbilisi in Georgia.

Five of the 10 cheapest cities are in Africa.

Top 20 most expensive cities

  1. Ashgabat, Turkmenistan
  2. Hong Kong
  3. Beirut, Lebanon
  4. Tokyo, Japan
  5. Zurich, Switzerland
  6. Shanghai, China
  7. Singapore
  8. Geneva, Switzerland
  9. Beijing, China
  10. Bern, Switzerland
  11. Seoul, South Korea
  12. Shenzhen, China
  13. Ndjamena, Chad
  14. New York City, USA
  15. Tel Aviv, Israel
  16. Copenhagen, Denmark
  17. Guangzhou, China
  18. London, UK
  19. Lagos, Nigeria
  20. Libreville, Gabon

DON’T FORGET TO LAUGH EVERYDAY

 

INSPIRATIONAL QUOTE FOR THE DAY

 “Never lie in bed at night asking yourself questions you can’t answer.” – Charles M. Schulz

HAPPINESS IS…

Happiness is…just being comfortable.

GRANDAD’S ONE LINER JOKE OF THE DAY

– When I drink coffee, I can’t sleep.

– Really? I have the exact opposite.

– Wow, seriously?

– Yes, when I sleep, I can’t drink coffee.

LOVE IS…

Love is…a soft touch.

TURN…TURN…TURN!

A time to be ‘Flippin’ skint’…A time to be a millionaire (in your dreams).

YOUR HISTORY

25th June

1947 The Diary of Anne Frank is published

The Jewish girl’s account of her life in hiding from the Nazis has become a well-known work of world literature and made Anne one of the most prominent victims of the Nazi regime. She died at age 15 in the Bergen-Belsen concentration camp.

1967 The world’s first live global satellite TV program is aired

The BBC program “Our World” featured artists from 19 countries. The Beatles premiered their song “All You Need Is Love” on the show. Some 400 million viewers tuned in.

1968 Tony Hancock died, he was an influential English comedian and the star of the classic BBC comedy “Hancock’s Half Hour”. It began its life as a radio show in 1954 before also becoming a TV show and featured such comedy names as Sid James, Kenneth Williams and Hattie Jacques. Hancock’s alcoholism contributed to his decline and suicide in 1968, his suicide note reading “Things just seemed to go too wrong too many times”. Died: June 25, 1968 (aged 44) Cause of Death: Suicide by drug overdose.

BOOK OF THE DAY

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RETRO HIT RECORD RAMBLINGS

Reflections of a Top Hit Record

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©2021 Phil M Robinson