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The ultra-rich lost 10% of fortune in 2022 due to Ukraine war: Study | World News

The ultra-rich misplaced 10% of fortune in 2022 on account of Ukraine battle: Research | World Information

The world’s ultra-richest noticed their fortunes shrink by 10 p.c in 2022, because of the battle in Ukraine, a examine stated Wednesday, however the outlook for them this yr is vivid.

The examine, by London-based property consultants Knight Frank, examined the fortunes of what it calls ultra-high-net-worth people (UHNWIs): folks with a web value of a minimum of $30 million together with their foremost residence.

“Difficult markets meant the vast majority of UHNWIs noticed their wealth decline final yr, with their collective wealth falling by 10 p.c,” stated the report — the equal of $10.1 trillion, it added.

“Final yr the Ukraine disaster fuelled the European vitality crunch and supercharged already surging inflation,” stated Liam Bailey, Knight Frank’s world head of analysis.

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“Because of this, 2022 noticed one of many sharpest upward actions in world rates of interest in historical past,” he added.

Though 4 in 10 of the ultra-rich noticed their wealth enhance in 2022, “the overwhelming development was adverse”, the report stated.

That was hardly stunning given the rise in rates of interest utilized by a number of central banks to counter the rise in inflation, it added.

Europe’s ultra-rich have been hit hardest, with a 17 p.c drop in fortunes there, adopted by Australia at 11 p.c and the Americas down 10 p.c.

Africa and Asia received off extra calmly, with falls of 5 p.c and 7 p.c respectively.

“Change charges had a major affect,” wrote Flora Harley, the report’s government editor.

“The energy of the greenback was unrivalled, pushed by the Federal Reserve’s unwavering dedication to one of many quickest cycles of fee hikes in historical past,” she added.

There are nonetheless “important dangers” for the world economic system, stated Bailey.

However later this yr “market sentiment will shift, shortly, and traders must be properly positioned to reap the benefits of the very actual alternatives rising throughout world actual property markets”.

Knight Frank stated that 69 p.c of rich traders anticipated development of their portfolio this yr.