Britain is $1.5 trillion poorer in dollar terms due to the fall in the pound since the vote to leave the European Union, according to a new study on global wealth. But Credit Suisse also predicts that around 945 billionaires will be minted around the world in the next five years.
“They look at the value of real assets, the value of things like stock markets and they rebase those price changes back into US dollar terms. I think that’s the key that this is really based around the change we’ve seen in the Sterling exchange rate versus the US dollar since the Brexit referendum. It doesn’t necessarily reflect the true change in wealth within the UK. If you put it basically into Sterling terms, it’s much rosier looking, most of those losses are notional i.e. unrealised – you don’t take a loss on a property, for instance, until you sell it. And what we’re talking about is not so much a loss as a reduction in value,” said Independent Analyst, Darren Sinden.
“Perhaps the rate in growth in the number of billionaires is slightly surprising because it wasn’t that long ago that we were reading headlines that their numbers were dwindling. The fact that a large number of these new businesses come from China, well that’s no surprise, it’s the powerhouse economy of the world, it’s the one place where significant economic growth is still possible and value creation can happen quite quickly,” added Sinden.
China’s population of millionaires is also expected to rise by more than 70 percent between 2016 and 2021 to just under 2,800.