By Timo Kirez

GENEVA (AA)Global household wealth, measured in current nominal US dollars, fell last year for the first time since the 2008 financial crisis, a new study found.

The total private net wealth was down 2.4% in 2022 compared with the previous year, according to the 14th edition of the Global Wealth Report released Tuesday.

According to the report, compiled by Swiss banks UBS and Credit Suisse, net private wealth fell by $11.3 trillion to $454.4 trillion. Wealth per adult also declined by $3,198 to $84,718. That's a 3.6% decline.

According to the study, much of the decline can be attributed to the appreciation of the US dollar against numerous other currencies.

Financial assets contributed most to the decline in wealth in 2022, while non-financial assets, mainly real estate, remained stable despite rapidly rising interest rates.

But the study also revealed regional differences in wealth development. The loss of global wealth is heavily concentrated in wealthier regions such as North America and Europe, which together lost $10.9 trillion.

In contrast, an opposite trend is evident in Latin America. There, the study recorded a total increase in wealth of $2.4 trillion. This, according to the report, was boosted by an average currency appreciation of 6% against the US dollar.

The study goes on to show that the highest wealth gains were achieved by Russia, Mexico, India and Brazil.

In terms of wealth per adult, Switzerland leads the way with $685,230, followed by the US, Hong Kong, Australia and Denmark.

The authors of the study said that global wealth will increase by 38% over the next five years, reaching $629 trillion by 2027. Moreover, growth in middle-income countries is expected to be the main driver of global trends.