Total net private wealth across the world decreased by 2.4% to $454.4 trillion at the end of last year, according to a joint report by Credit Suisse and UBS published this week. The decline was the first since the 2008 financial crisis.

The research found that much of the $11.3 trillion fall came from the appreciation of the US dollar against numerous other currencies.

Financial assets reportedly contributed most to wealth declines in 2022, while non-financial assets such as real estate stayed resilient, despite rapidly rising interest rates. Wealth per adult declined by 3.6% to $84,718, the survey showed.

Losses were heavily concentrated in wealthier regions such as North America and Europe, which together shed $10.9 trillion. Asia Pacific recorded a decline of $2.1 trillion, while Latin America was the outlier with a total wealth increase of $2.4 trillion, helped by an average 6% currency appreciation against the US dollar.

In country terms, the US headed the list of losses, followed by Japan, China, Canada, and Australia, researchers found. The largest wealth increases were recorded for Russia, Mexico, India, and Brazil.

“Wealth evolution proved resilient during the Covid-19 era and grew at a record pace during 2021. But inflation, rising interest rates, and currency depreciation caused a reversal in 2022,” said global head of economics and research at Credit Suisse, Nannette Hechler-Fayd’herbe.

READ MORE: Global household wealth optimism crashes – survey

The report projected that global wealth will rise by 38% over the next five years, reaching $629 trillion by 2027. Growth in middle-income countries will be the primary driver of global trends, it added.

Researchers also estimated wealth per adult to reach $110,270 in 2027, predicting that the number of millionaires will reach 86 million while the number of ultra-high-net-worth individuals (UHNWIs) will likely rise to 372,000…RT

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