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Laxman Pai, Opalesque Asia: Global gross financial assets increased by 9.7% in 2020, reaching the magic EUR 200 trillion ($231tn) mark for the first time, Allianz unveiled the twelfth edition of its 'Global Wealth Report'.
The report, which puts the asset and debt situation of households in almost 60 countries under the microscope, said that 2020 was the year of extreme contrasts.
Covid-19 destroyed millions of lives and livelihoods and the world economy plunged into its deepest recession since World War II. At the same time, monetary and fiscal policy mobilized unimagined sums to support the economy, markets, and people. With success: Incomes were stabilized and stock markets recovered quickly.
"With this tailwind, households' wealth weathered the Covid-19 crisis: Global gross financial assets increased by 9.7% in 2020, reaching the magic EUR 200 trillion mark for the first time," it said.
Savings were the main driver: As lockdowns drastically reduced consumption opportunities, the global phenomenon of "forced savings" was born. Fresh savings jumped by 78% to EUR 5.2 trillion in 2020, an absolute record.
Inflows into bank deposits - the default option of forced savings, simply leaving unspent income in the bank account - almost tripled (+187%). Bank deposits accounted for half or more of fresh savings in all markets considered.
As a result, for the first time, bank deposits worldwide grew at a double-digit rate of 11.9%;...................... To view our full article Click here
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