Credit Suisse Estimated Pandemic’s Effect on Income per Capita
OREANDA-NEWS. According to the results of the second quarter of 2020, the general welfare of the world slightly increased compared to the end of last year, but its level per one adult person has slightly decreased. This follows from the data of the annual Global Wealth Report of the bank Credit Suisse.
So, if there were not the pandemic, then world welfare per capita would have increased from 77.3 thousand US dollars at the beginning of the year to 78.4 thousand dollars by the end of June. Instead, the pandemic led to a decrease in the average level of wealth to 76.9 thousand dollars.
“Given the damage inflicted by COVID-19 on the global economy, it seems remarkable that household wealth has emerged relatively unscathed,” the report reads. The authors of the study consider that the increase in savings can be explained by quarantine measures and other restrictions, which caused a decrease in spending, combined with deferred rent and mortgages.
Latin America became the region most affected as a result of the pandemic; in these countries the total wealth in dollar terms fell by 12.8 % due to the devaluation of national currencies.