Markets

Rich 1% own half of all the wealth

Rich 1% own half of all the wealth

"This report highlights the huge gulf between the haves and the have nots-the world's richest one percent own more than everyone else combined while the poorest half of the population share less than a penny of every pound of wealth", said Katy Chakrabortty, head of advocacy for Oxfam, in a statement.

In its Annual Global Wealth Report, the research arm of Swiss banking giant Credit Suisse found that global wealth had expanded 27 percent in the past 10 years. The number of ultra rich in the country is expected to reach 3,72,000 while the total household income is likely to grow by 7.5 per cent annually to touch $ 7.1 trillion by 2022, the report said. There is still considerable wealth poverty as 92 per cent of the adult population has below $10,000, the report said.

According to Credit Suisse Global Wealth Report, since 2000, wealth in India has grown 9.9 per cent per annum, faster than the global average of 6 per cent even when taking into account population growth of 2.2 per cent annually.

In most countries, including the United States, a large wealth gap translates into those at the top accruing political power, which in turn can lead to policies that reinforce benefits for the wealthy.




Europe followed an identical patter, with wealth across the continent also rising by 6.4pc during the 12 month period. Wealth in the Asia-Pacific grew by 3 percent to $89 trillion, putting the region ahead of Europe on $80 trillion and behind the USA on $93.6 trillion. Thirty-six million people with over a million dollars make up just 0.7 percent of the global population, but control 46 percent of the world's $280 trillion dollars. The firm feels that a hard start and adverse market conditions in their early adult years most likely will limit their wealth acquiring prospects in future years.

It pointed to "widespread gains in equity markets", at the same time as non-financial assets like real-estate for the first time passed the level they were at when the global financial crisis struck in 2007.

At the height of the global financial meltdown in 2008, the world's richest people held 42.5 percent of the global wealth, compared with 50.1 percent today.