The average wealth owned by Israeli adults shrank by $24,000 in 2022 to $235,000, according to the latest Global Wealth Report compiled by Swiss bank UBS, released today.
The decline is not only in absolute terms, but also relative: in 2021, Israel was in sixteenth place worldwide for average wealth, but fell to nineteenth place in 2022. In the median wealth rankings, Israel was not in the top twenty.
The report finds that global private wealth shrank in 2022 for the first time since the financial crisis of 2008, falling 2.4% to $454.4 trillion, although it states that "Much of this decline comes from the appreciation of the US dollar against many other currencies," and that "If exchange rates were held constant at 2021 rates, then total wealth would have increased by 3.4% and wealth per adult by 2.2% during 2022."
Although the report does not specify reasons for the decline in wealth in Israel, it would appear that the weakening of the shekel against the US dollar played a large part.
The report states that "In terms of wealth per adult, Switzerland continues to top the list followed by the USA, Hong Kong SAR, Australia and Denmark despite sizeable reductions in mean wealth versus 2021."
Looking to the future, the Swiss banks estimate that "global wealth will rise by 38% over the next five years, reaching USD 629 trillion by 2027," which will be $110,270 per adult.
Published by Globes, Israel business news - en.globes.co.il - on August 16, 2023.
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