The number of millionaires in the UK has decreased over 12 months by 15% because of the decision of the British to leave the EU, according to Crédit Suisse. The decision led to the collapse of the pound and the local stock market, which led to the impoverishment of households
The number of dollar millionaires in the UK dropped by 15% because of the decision of British subjects to withdraw from the EU, estimated by analysts of Crédit Suisse. As explained in the Bank’s report on the welfare of different countries of the world (Global Wealth Report), this is due to the depreciation of the pound sterling and the securities market at the background of the results of the referendum on June 23.
From June 2015 to June 2016 British households are poorer by 10%, or $1.5 trillion, which was a direct result of the decisions on the country’s withdrawal from the EU, the report says. “The end of 2015 and all of 2016 turned out for the UK quite rapid, while the decision to leave the EU resulted in a sharp fall in the exchange rate of the national currency and the local stock market. Prospects as the state of the economy in General and household welfare is very uncertain,” the analysts of Crédit Suisse.
The volume of private capital in the UK is $14 trillion. This amount is distributed among the 49 million adults, of which 5% owned by the state of $1 million or more, specified in the report.
As recalled by Bloomberg, for many unexpected results of the referendum on June 23 led to the fall of the pound against the dollar by 15% this year and sparked the most serious collapse of the stock market during a single trading day since the global financial crisis of 2008. Although since then, the market was able to recover, the country maintains political and economic instability, which will continue for the duration of the process of “divorce” with the EU, says Crédit Suisse.
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In early October, Prime Minister Theresa may has promised to start the procedure of withdrawal from the EU under article 50 of the Lisbon Treaty, until March 2017. But a month later, on 3 November, London’s High court ruled that the government has no right to begin the formal process of withdrawal from the EU should obtain the approval of Parliament. The government appealed against the decision in the High court of London, while may has warned that if the appeal is denied and the government will have to wait for the approval from the Parliament, the country will get the worst scenario. She urged Parliament “to accept the decision of the people”.
According to Global Wealth Report, a leader in the growth of welfare became Japan. For the 12 months to June, household welfare in the third largest economy in the world rose 19%, or nearly $4 trillion to $24 trillion, against the background of strengthening the yen against the dollar. The second fastest growth were U.S. household wealth there has grown to $85 trillion, and this figure shows growth for the eighth consecutive year. The US is home to most of dollar millionaires in the world — 41%, or 13.5 million people. Russian households have become poor by 15% or by 0.2 trillion to $1.13 trillion.
Japan, USA and Germany have the most new millionaires, as the number of people around the world, whose fortune is $1 million and more increased by 596 million, to 32.9 million the fastest growth in the number of millionaires in the next five years expected in China (plus 73 percent), as well as in India, Australia and Canada.
The well-being of households worldwide grew by a modest from the perspective of Crédit Suisse 1.4 percent, to $256 trillion, amid weak global economic growth. The Bank expects that by 2021 it will reach $334 trillion.