A new wealth report reveals how a weaker local currency has meant fewer South Africans sitting round the table of the top 1% of global wealth holders.<\/p>\n
The Credit Suisse Research Institute seventh annual Global Wealth Report found that overall growth in global wealth was constrained in 2016, continuing the trend that emerged in 2013 and contrasting sharply with the double-digit growth rates witnessed before the global financial crisis of 2008.<\/p>\n
The report\u2019s findings showed that 66,000 South Africans are among the top 1% of global wealth holders and 45,000 are currently dollar millionaires in 2016. This however, is down on last year\u2019s figure of 50,000 and lower than previous years.<\/p>\n
“This reflects a decline in the South African rand during this period but mirrors a global trend of adverse currency movements which caused every market except Asia-Pacific\u2019s wealth to fall thanks to the appreciation of the yen,”\u00a0Credit Suisse said.<\/p>\n
Overall, emerging economies account for 6.5% of millionaires, the bank said.<\/p>\n
In its report in 2015, Credit Suisse estimated that 71,000 South Africans were part of the top 1% of global wealth holders.<\/p>\n
The group’s data showed then that the top 1% controlled as much as 48.3% of the country’s total $671 billion wealth – about $287.2 billion.<\/p>\n
Read: How rich is the average South African household?<\/a><\/strong><\/p>\n Credit Suisse said that 2016 has also seen a downturn in mean wealth for the South African population which decreased from $21,402 (in 2015) to $20,589 (R291,186) per adult.<\/p>\n Personal wealth in South Africa largely comprises financial assets, which contribute 65% of the household portfolio, the report found. This is thanks to a vigorous local stock market, along with strong life insurance and pension industries.<\/p>\n However, it is in contrast to pre-financial crisis figures where average household wealth in South Africa tripled from $8,400 in 2000 to $25,800 in 2007, Credit Suisse said.<\/p>\n Additionally, low real estate prices means that average real assets of $8,800 (R124,504) are only around twice the level of average debt ($4,300), it said.<\/p>\n In a turnaround on a key indicator, the report noted that GDP increased from $14,679 per adult last year to $15,158 (R214,543) per adult in South Africa during 2016.<\/p>\n