Pandemic deprives millionaires in Mexico and there are only 264 left

At the end of 2020, 10 millionaires lost at least 1 million dollars due to the crisis, according to a Credit Suisse Research Institute report.

Pandemic deprives millionaires in Mexico and there are only 264 left
Photo by Anastase Maragos / Unsplash

The COVID-19 pandemic 'eliminated' 10 millionaires in Mexico. Of the 274 individuals with at least 1 million dollars in 2019, at the end of 2020, there were 264. With this drop, the country entered the Top 10 of the nations with the greatest loss of millionaires and was led by Brazil, India, Russia, and Hong Kong, economies where the exchange rate against the US dollar was the main cause of the losses, according to the report on Global Wealth 2021 of Credit Suisse Research Institute.

Mexico's performance was contrary to the global trend, which had a 10.2 percent rebound to a total of 56.1 million wealthy people as a world population, with global wealth growing 7.4 percent to 418.3 trillion dollars. Furthermore, expectations indicate that the upward trend will continue with a 39 percent increase over the next five years to reach $583 trillion by 2025, according to the report.

Global wealth not only held steady in the face of turbulence but increased rapidly in the second half of the year. Wealth creation in 2020 appears to have completely decoupled from the economic problems resulting from COVID-19, commented Shorrocks, during the virtual presentation of the report for the Americas.

The pandemic had an acute short-term impact on global markets, but this was largely reversed by the end of June 2020. In the global wealth growth of 7.4 percent, 3.3 percent of the expansion is attributed to changes in the exchange rate parity of different currencies against the U.S. dollar.

"Wealth creation in 2020 showed great immunity to the challenges faced by the world due to the actions taken by governments and central banks to mitigate the economic impact of covid19. Global wealth grew 7.4 percent and wealth per adult increased 6 percent to reach another all-time high of $79,952. Overall, the countries most affected by the pandemic have not fared worse in terms of wealth creation," the report said.

The regions that added the most wealth were North America with $12.4 trillion and Europe with $9.2 trillion, which were the largest additions. China added another $4.2 trillion and the Asia Pacific region, without China and India, another $4.7 trillion. India suffered a 4.4 percent reduction to $594 billion, while in Latin America wealth declined 11.4 percent to $1.2 trillion, both record losses amplified by currency depreciation. Total wealth in Latin America decreased 10 percent to 10.9 trillion dollars, while wealth per adult fell 11.4 percent to 24,301 dollars.