Trump's trade war has reduced the world's net worth by $2 trillion ($1.5 trillion of which came off the balance sheets of the 1%), with losses most deeply felt in China and Europe; North and South Americans took smaller losses, while the Middle East actually made gains: the richest Saudis have grown 7% richer during the trade war, while the richest Kuwaitis are 8% richer.
All in all, the global 1% saw a 6% decline in their wealth.
The stats come from Capgemini's 2019 World Wealth Report.
“Geopolitical unrest and trade wars forced countries to adopt a loose monetary policy to encourage economic growth. Another blow to the global economy was the decline in world trade, which shrank from 5% at the start of 2018 to almost zero toward the end of the year. Trade wars may drag the global economy down further, coupled with higher rates and market volatility,” the report said.
Given that, it’s perhaps no surprise that China’s super wealthy lost $500 billion, equivalent to the whole of Europe’s collective losses. North and South America meanwhile only experienced relatively small declines in comparison — due perhaps to the US’ upper hand in trade negotiations. The Middle East was the only region where the rich actually got richer last year.
The world's super wealthy just collectively lost $US2 trillion – and Trump's trade war is to blame [Jack Derwin/Business Insider]
(via Naked Capitalism)