The ultra-wealthy in Europe were the heaviest hit, with a 17% decline in wealth, followed by Australia at 11% and the Americas at 10%. The declines in Africa and Asia, at 5% and 7%, respectively, were less severe.
According to a report released on Wednesday, the war in Ukraine caused the world's ultra-rich to experience a 10% decline in wealth in 2022, but things look up for them this year.
The research by London-based real estate consultants Knight Frank looked at the financial outcomes of so-called ultra-high-net-worth individuals (UHNWIs), or those with a combined net worth of at least $30 million, including their primary house.
The survey stated that "challenging markets meant that most UHNWIs saw their wealth shrink last year, with their overall wealth falling by 10%" (equal to $10.1 trillion).
Liam Bailey, global head of research at Knight Frank, stated that last year's Ukraine crisis exacerbated the European energy problem and accelerated already soaring inflation.
He continued that the rise in global interest rates in 2022 was one of the sharpest in history.
Even while four out of ten ultra-wealthy people witnessed a rise in their wealth in 2022, "the overwhelming tendency was negative," according to the research.
Given the increase in interest rates numerous central banks had implemented to combat the inflation increase, it was noted that this was scarcely surprising.
The ultra-wealthy in Europe were severely hit, with a 17 percent decline in their fortunes, followed by Australia at 11% and the Americas at 10 percent.
With drops of 5% and 7%, respectively, Africa and Asia fared better than the rest of the world.
Currency rates "had a substantial impact," according to the report's chief editor Flora Harley.
The Federal Reserve's persistent commitment to one of the fastest cycles of rate hikes in history, she continued, was the reason behind the dollar's unmatched strength.
According to Bailey, "serious threats" remain to the global economy.
Nevertheless, "market sentiment will turn quickly, and investors need to be well-positioned to take advantage of the genuine possibilities appearing across global real estate markets" later this year.
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