Dubai: Switzerland once again topped the rankings in terms of average wealth per adult. Despite a decline in average adult wealth, its leading position remains unchallenged.

Data from the Global Wealth Report showed that the global inequality in terms of wealth distribution is on the rise. The report estimates that the top one per cent of wealth holders now own 50.8 per cent of global household assets, which is above the levels of 2000. Changes in wealth inequality happen slowly, making it difficult to identify the drivers of these trends.

“Our calculations indicate that the top 1 per cent of global wealth-holders started the millennium owning 49.6 per cent of all household wealth. This share declined slowly and steadily until it reached 45.4 per cent in 2009. The downward trend then reversed and the share rose each year, passing the 2000 level in 2014. We estimate that the top percentile now own 50.8 per cent of global household assets.

The report estimates that the widening wealth gap could be the result of the rising valuations of financial assets, especially company securities that are likely to be an important factor because wealthier individuals hold a disproportionate share of their assets in financial form. The future implications of this correlation are especially significant. If equity prices do not rise as fast in the years ahead, and the share of financial wealth stabilises — or even declines — then the rise in wealth inequality seen in recent years may halt, and possibly reverse.

The highest rise in wealth among individual countries was achieved by Japan with a total increase of $3.9 trillion, followed by a $1.7 trillion rise in the US. Impact of adverse currency movements caused wealth to fall in every region except the Asia-Pacific.

The UK suffered a significant drop in wealth in 2016, with $1.5 trillion being wiped off household wealth in response to the Brexit vote, which triggered a sharp decline in exchange rates and the stock market.

“The impact of the Brexit vote is widely thought of in terms of GDP but the impact on household wealth bears watching. Since the Brexit vote, UK household wealth has fallen by USD 1.5 trillion. Wealth per adult has already dropped by $33,000 to $289,000 since the end of June. In fact, in US dollar terms, 406,000 people in the UK are no longer millionaires,” said Michael O’Sullivan, Chief Investment Officer of International Wealth Management at Credit Suisse.

Data showed that the number of millionaires globally has increased by 155 per cent, while the number of ultra high net worth individuals (UHNWIs) has risen by 216 per cent making them by far the fastest-growing group of wealth holders. The 12.4 million millionaires in the world in 2000 were heavily concentrated (96 per cent) in high-income economies. Since then, 20 million ‘new millionaires’ have been added to this total, of whom approximately 2.6 million — 13 per cent of the total additions — come from emerging economies.