World’s super rich almost unaffected by debt crisis

Published on Oman Daily Observer, June 22, 2012.

Frankfurt — The global stock exchanges may have taken a hammering in 2011 but it appears the world’s super rich have still managed to weather the economic crisis quite well, thanks to varied investments in fixed-term deposits, artwork and even diamonds.

The dollar millionaires of this world registered a combined loss of 700 billion dollars last year, just a little less than the $880 billion the countries of the euro zone have so far had to pump into the European Stability Mechanism (ESM) in efforts to protect the faltering euro currency.  But for the world’s rich the loss meant a modest and eminently manageable wealth reduction of 1.7 per cent. 

They still have a combined wealth of $42 trillion, according to the financial services company Capgemini SA and the Royal Bank of Canada. Germany’s economy, for comparison, was worth 2.57 trillion last year.

The world’s number of High Net Worth Individuals (HNWI), or people with liquid assets of $one million, meanwhile, rose to 11 million people.

Millionaires from the United States, Japan and Germany make up half of this figure, and have an average wealth of more than $3 million … (full text).

Links:

The Cost of Tax Abuse, on STWR, by Tax Justice Network, November 25, 2011;

Tax evasion is worth $3.1 trillion a year – over 5% of its GDP, on STWR, by Tax Justice Network, November 25, 2011.

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