Covid crisis caused wealth inequality & created millions of new millionaires – Credit Suisse — RT Business News

The Covid-19 pandemic noticed an unlimited development in wealth disparity worldwide in 2020, the Credit Suisse Research Institute says. It reported a 5.2 million improve within the quantity of millionaires, to a complete of 56.1 million folks.

“The repercussions of the Covid-19 pandemic led to widespread rises in wealth inequality in 2020,” the annual Credit Suisse Global Wealth Report states, claiming that the wealthy reportedly cashed in on surging shares.

The quantity of millionaires elevated to 56.1 million folks, who’re reportedly holding 45.8% of the world’s wealth – with 1.7 million of them residing within the US.

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The detailed figures present that 56.1 million people around the globe had property price greater than $1 million, with 2020 turning into the primary 12 months wherein a couple of % of the world’s adults had been “dollar millionaires.”

The report admits development within the wealth hole stems from the “nature of the policy response” to the pandemic by governments and central banks internationally.

“The rise in wealth inequality was likely not caused by the pandemic itself, nor its direct economic impacts, but was instead a consequence of actions undertaken to mitigate its impact, primarily lower interest rates,” it highlights.

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The impression of the Covid-19 pandemic on family wealth, notably for the poorest, was reportedly worst in states the place governments didn’t grant compensation for wages misplaced throughout the collection of enforced lockdowns. In the nations the place governments managed to introduce furlough schemes, the hit of job cuts and decrease enterprise revenue was softened.

At the identical time, the wealthiest teams, who had been already sitting on huge holdings of shares and properties, had been comparatively unaffected by the financial shutdowns. After being crushed within the first half of 2020, share costs rebounded later within the 12 months, thus boosting the fortunes of wealthier people.

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