Five countries have mismanaged their federal budgets through the Covid-19 pandemic worse than all other nations. That’s according to the annual Global Wealth Report published earlier today by financial giant Credit Suisse.
Of the 44 major global economies, all will report lower surpluses – or deeper deficits – in 2020 than in 2019. But only five will deliver worse budget outcomes by more than fifteen per cent. They are the USA (down 15.9%), South Africa (-16.0%), Iceland (-17.2%), Britain (-18.1%) and Venezuela (-21.5%).
Successful countries, including China, the Netherlands, Sweden, Taiwan and Mexico, will have their surpluses reduced by less than 5.5%. [Table 1, page 14]
The Global Wealth Report and the accompanying Global Wealth Databook contain around 240 pages of detailed information on the wealth, wealth distribution and annual changes in these for about 175 nations. These two documents are eagerly-awaited by economists and econometrics wonks.
Other key findings
- The USA has suffered badly from the pandemic, recording the tenth-highest number of deaths per capita among countries with more than a million people by the end of August. The elderly, minorities, and low-income groups have been hardest hit. [Note: the USA was eighth-highest by mid October.]
- Personal saving rose and debt fell in the USA in 2020. The net result is that wealth per adult fell by just 0.2% in the first half of 2020.
- However, Credit Suisse expects wealth to decline about 5% in the second half of 2020 and to rise very slowly in 2021.
- Globally, household wealth has held up extremely well in the face of the economic turmoil confronting the world. This is due to three factors. First, consumers have spent less than in previous years resulting in higher savings or lower debt. Second, lower interest rates and relaxed credit conditions have supported the values of houses and pension entitlements. Finally, massive economic support by governments has shifted wealth from the public to the private sector, including to households.
- The USA has high average wealth and high wealth inequality. Due to these, there is a disproportionate number of adults with wealth above $100,000. The country has the most members in the top one per cent global wealth group and 39 per cent of the world’s millionaires. The number of individuals with wealth above $50 million is about four times that of the next country, China.
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When the Databook is released we will have much more information to pore over and more outcomes to share here.
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The Credit Suisse median wealth figures are the last dataset needed to complete the annual IAREM – the Independent Australia Ranking on Economic Management. This ranks all economies in the world on economic outcomes overall.
This will be published by Independent Australia and reported by this diary as soon as Credit Suisse’s Databook is available.
Meanwhile, last year’s IAREM, which showed the US economy ranking 34th in the world, is here:
https://independentaustralia.net/politics/politics-display/worlds-best-economy-2019-no-not-the-coalitions-australia-,13272
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“Alan Austin is a great Australian journalist and, I think, a pirate. I steal Alan Austin’s findings all the time.”
~ Jordan Shanks
https://www.youtube.com/watch?v=HtV-2X4BjQI