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Credit Suisse report reveals Australians are now the richest people in the world


Australia is the richest country in the world following a spike in house prices, with the typical resident now worth more than $400,000, a Swiss bank has said.

Credit Suisse’s annual Global Wealth Report for 2022 found that Australia is the wealthiest nation in the world based on the median – or average – wealth of each adult.

This is based on their net worth, calculated on their assets after paying off their debt.

The typical Australian adult was worth US$273,900 (A$409,075), the bank found – making them wealthier than residents of Belgium, New Zealand, Hong Kong, Denmark, Switzerland, Canada, the Netherlands, the United Kingdom and France.

The report noted that median wealth – as opposed to average wealth – was higher in countries with lower income inequality, and that Australia had particularly benefited from increased pandemic relief measures. and record interest rates of 0.1%.

Australia is the richest country in the world following a spike in house prices, with the typical resident now worth more than $400,000, a Swiss bank has said. Credit Suisse’s annual Global Wealth Report for 2022 revealed that Australia is the wealthiest nation in the world based on the median – or average – wealth of each adult (pictured is a woman in Bondi Beach in Sydney)

As for a different measure – average wealth – Switzerland was No. 1 with $696,000 (A$1.041 million) – making it the only nation of Australian dollar millionaires when the figures were translated from US greenbacks.

On this measure, Australia ranked fourth with an average wealth of US$550,110 (A$822,316) behind the United States with US$579,050 (A$865,768) and Hong Kong with $552,930. (A$826,969).

The Credit Suisse report covered 2021 when Reserve Bank interest rates were still at a record high of 0.1% and domestic house prices jumped 22.1%, marking the strongest annual increase since 1989.

Last year, the median property price in Sydney soared 29.4 per cent to $1.375 million, while Brisbane’s equivalent value soared 30.4 per cent to $782,967, according to data from CoreLogic.

Credit Suisse noted that house prices rose 31% in Australia, outpacing the 25% increase in New Zealand.

“Housing markets were initially subdued during the peak of the pandemic, but recovered in the second half of 2020 and continued to thrive in 2021,” he said.

In a different measure - average wealth - Switzerland was No. 1 with US$696,000 (A$1.041 million) - making it the only nation of Australian dollar millionaires.  On this measure, Australia ranked fourth with an average wealth of US$550,110 (A$822,316) behind the United States (New York's Times Square, pictured) on US$579,050 (A$865,768 A) and Hong Kong over US$552.  , 930 (A$826,969).

In a different measure – average wealth – Switzerland was No. 1 with US$696,000 (A$1.041 million) – making it the only nation of Australian dollar millionaires. On this measure, Australia ranked fourth with an average wealth of US$550,110 (A$822,316) behind the United States (New York’s Times Square, pictured) on US$579,050 (A$865,768 A) and Hong Kong over US$552. , 930 (A$826,969).

“Low interest rates were probably one of the factors responsible for the buoyancy of the real estate market.

“Exceptionally, no country recorded a decline in property prices in 2021.”

By comparison, stock prices rose 5.9% last year, with the Australian Securities Exchange’s benchmark S&P/ASX200 index peaking in August 2021 before falling back.

The report also noted a surge in after-tax disposable income in Australia, following more than $300 billion in pandemic social spending measures, as household savings increased during lockdowns.

“As in most other high-income countries we look at here, disposable income in Australia has increased significantly by 4.8% due to pandemic relief payments,” he said.

“The increase in savings had a positive effect on financial assets and also led to some debt repayment.”

Despite taking second place in the average wealth stakes, the United States was in 18th place in the median wealth ranking.  That puts it behind oil-rich Qatar (sheiks, pictured) in 16th place.

Despite taking second place in the average wealth stakes, the United States was in 18th place in the median wealth ranking. That puts it behind oil-rich Qatar (sheiks, pictured) in 16th place.

Wealth inequality in Australia was low by international standards, with the richest 1% of adults holding 21.8% of the assets.

By comparison, in the United States, the top 1% hold 35.1% of the wealth.

So, despite placing second in the average wealth stakes, the United States was 18th in the median wealth ranking.

That puts it behind oil-rich Qatar in 16th place.

Credit Suisse predicted rising interest rates around the world in 2022 and high inflation, following Russia’s invasion of Ukraine, would hamper wealth creation in years to come with debt as a proportion of gross domestic product, at the highest level since the Second World War. .

“Higher inflation is likely to drive down real global wealth in 2022 and beyond,” he said.

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

Credit Suisse Median Wealth Chart

1. Australia: US$73,900 (A$409,075)

2. Belgium: US$267,890 (A$400,197)

3. New Zealand: US$231,260 (A$345,466)

4. hong kong: US$202,380 (A$302,324)

5. Denmark: US$171,170 (A$255,701)

6. Swiss: US$168,080 (A$251,023)

seven. Canada: US$151,250 (A$225,923)

8. Netherlands: US$142,990 (A$213,591)

9. UK: US$141,550 (A$211,440)

ten. France: US$139,170 (A$208,021)

11. Norway: US$132,480 (A$198,021)

12. Japan: US$120,000 (A$179,341)

13. Taiwan: US$113,940 (A$170,239)

14. Italy: US$112,140 (A$167,550)

15. Spain: US$104,160 (A$155,637)

16. Qatar: US$100,010 (A$149,436)

17. Sweden: US$95,050 (A$142,025)

18. United States: US$93,270 (A$139,389)

19. Korea: US$93,140 (A$139,218)

20. Singapore: US$93,130 (A$139,203)

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