World’s Ultra-Rich Lost About $14 Trillion Of Their Wealth In 2022 Due To Ukraine War: Study

Europe's ultra-rich were hit hardest, with a 17 per cent drop in fortunes followed by Australia at 11 per cent and the Americas down 10 per cent, according to the report.

Europe's ultra-rich witnessed a 17 per cent drop in their fortune

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The economic crisis was also felt by the world's ultra-richest as their fortunes dwindled by 10 per cent in 2022 due to the war in Ukraine, according to a study on Wednesday. However, the outlook remains bright this year.

In its latest study, the London-based property consultant Knight Frank studied the fortunes of what it calls ultra-high-net-worth individuals (UHNWIs): people with a net worth of at least $30 million including their main residence.

"Challenging markets meant the majority of UHNWIs saw their wealth decline last year, with their collective wealth falling by 10 per cent," the report said. "Last year the Ukraine crisis fuelled the European energy crunch and supercharged already surging inflation," said Liam Bailey, Knight Frank's global head of research. “As a result, 2022 saw one of the sharpest upward movements in global interest rates in history," he added.

The report revealed that four in 10 of the ultra-rich saw their wealth increase in 2022, "the overwhelming trend was negative". The report said it was not surprising given the rise in interest rates applied by several central banks to counter the rise in inflation.

Which ultra-rich people were affected the most?

The ultra-rich from Europe were most impacted as they witnessed a 17 per cent drop in fortunes followed by Australia at 11 per cent and the Americas down 10 per cent, according to its findings. Africa and Asia were better of with falls of five percent and seven percent respectively.

"Exchange rates had a significant impact," wrote Flora Harley, the report's executive editor. "The strength of the dollar was unrivalled, driven by the Federal Reserve's unwavering commitment to one of the fastest cycles of rate hikes in history," she added. She noted there are still "significant risks" for the world economy. However, later this year "market sentiment will shift, quickly, and investors need to be well placed to take advantage of the very real opportunities emerging across global real estate markets".

The company noted that 69 percent of wealthy investors expected growth in their portfolio this year.