Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Wealth in Europe at record high of 56 trillion euros - report

Published 01/10/2014, 14:38
Wealth in Europe at record high of 56 trillion euros - report
BAER
-

LONDON (Reuters) - Private wealth across Europe reached an all-time high of 56 trillion euros (43.59 trillion pounds) last year and is set to rise by a further 40 percent to almost 80 trillion by 2019, research conducted by a Swiss private bank showed.

Julius Baer's (VX:BAER) inaugural "Wealth Report: Europe" showed that despite recent concerns about economic malaise, Europe has maintained his role as one of the wealthiest region's in the world, its authors said.

Wealth in Europe rose by 1.7 percent last year, exceeding the previous peak recorded prior to the 2007-2009 financial crisis.

Germany, Britain, France and Italy accounted for almost three quarters of total net wealth, which is defined as gross financial assets, minus debt plus real assets.

Wealth levels per adult were highest in Luxembourg, where the average adult holds more than 400,000 euros compared with the European average was 167,100 per adult.

However the financial crisis took its toll in Spain and Greece. Around 1.4 trillion euros of wealth have been destroyed in Spain since 2007, it said.

Concerns were also raised that more wealth is becoming concentrated in fewer hands. The report said that more than half of the total wealth is held by the wealthiest 10 percent of European households.

"It is important to understand that excessive inequality slows a country's economic growth and weakens aggregate demand," Julius Baer's Chief Investment Officer Burkhard Varnholt wrote in the report.

He said the wealthy should consider investment opportunities that have clear social benefit to help inequality and youth unemployment.

© Reuters. The company logo is placed beside the entrance of the headquarters of Swiss bank Julius Baer in Zurich

Other investments include art, which has seen both volumes and value traded rise in the last decade. Julius Baer, which has its own art collection and a team of curators, said this has coincided with an increase in the number of high net worth individuals in China and other emerging markets.

(Reporting by Clare Hutchison, editing by Louise Heavens)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.