Allianz reveals that in 66, global household assets and debt decreased by 2.7%.

Allianz releases Allianz Global Wealth Report 2023, finding household financial assets Globally, the drop was 2.7%, the biggest since the global financial crisis. While Thailand is affected by inflation. Slow growth in many years

"Allianz" publish “Allianz Global Wealth Report” The 14th edition analyzes the asset and debt situation of households in nearly 60 countries, identifying 2566 as a bad year. Global household financial assets fell 2.7%, the largest since the global financial crisis.

Moreover, three-quarters of the world's wealth growth over the past 3 years has been rendered meaningless by rising inflation. Global financial assets are likely to grow between 4% and 20% over the next three years, while household debt growth is falling sharply. In Asia, it decreased by almost half. In Thailand Growth was slower but still positive at 4%.

The year 2565 is a very bad year for people with savings. It can be seen that asset prices decreased in every group under a situation that could be called “Everything went downhill.” Global household financial assets fell 2.7%, the biggest drop since the 2551 global financial crisis.

The growth rates of the three main asset classes were clearly different, with securities (-7.3%) and insurance/pensions (-4.6%) contracting significantly. While bank deposits grew strongly at 6.0%, overall losses amounted to €6.6 trillion in financial assets. Total financial assets stood at €233 trillion at the end of 2565. €63.9 trillion, or 27%, was in Household sector in Asia

Thailand has moderate growth.

Meanwhile, in 2565, Thailand's total financial assets of Thai households increased by only 2.1%, which is clearly lower than the increase of 9.7% last year. The main reason is the decrease in various assets such as insurance/pension assets. It lost more than 3.5% of its value, the first decline this century. Securities were also disappointing. Its growth decreased from 26.4% (2564) to 3.1% last year.

However, bank deposits, which account for more than 50% of investment portfolios and are the main asset class in Thailand, remained stable. It grew 3.6% (2564: 4.0%) compared to the year before the pandemic in 2562. Financial assets were up 20.8%, but only in numerical terms. When adjusted for inflation The increase will decrease by an average of 13.5% over three years.

Meanwhile, debt growth slowed slightly to 3.7%, compared to 3.9% in 2564, resulting in the debt-to-GDP ratio falling 3 percentage points to 87%, which is still higher than the regional average of 26 percentage points. Net financial assets were almost flat (+0.5%). With net financial assets per capita of 5.11 billion euros, Thailand remains in 45th place today in the ranking of the richest countries.

North America had the biggest decline in growth, or 6.2%, followed by Western Europe (4.8%). Asia, on the other hand, continued to have good growth rates. The regional average is 4.6% in 2565, compared to 10.2% in 2564. Even Japan has seen an increase in growth. Although it is very small (0.2%)

On the contrary Emerging economies like Indonesia and the Philippines posted double-digit growth. China's financial assets also grew strongly, reaching 6.9%, but last year rose 13.3% and the long-term average over the past 20 years was 15.9%, which is disappointing growth. This is the result of multiple lockdowns.

Despite heavy losses But global household financial assets were still nearly 19% higher than before COVID-19 at the end of last year, in real terms, when adjusted for inflation. Nearly two-thirds of growth (in numbers) is affected by price increases. And as a result, real growth dropped to just 6.6% within three years.

While most regions of the world have actually managed to maintain their growth rates, Western Europe is not like that. The slight increase in profit does not mean anything. And real wealth fell 2.6% compared to 2563. Asia saw real growth of nearly 20% over three years, thanks to lower inflation. Even in China and Japan.

side Mr. Ludovic Serbran Chief Economist of Allianz reveals that the real enemy of savings is inflation. Not only inflation that has occurred since post-COVID-19 has skyrocketed. In Thailand, numerical growth and real growth are very different.

Assets per capita increased 390%, excluding inflation, over the past 20 years, when adjusting for purchasing power. Assets per capita increased by 150%, demonstrating the need for smart savings and financial literacy. But inflation is a devil that is difficult to overcome. Without prompting and advice from experts for long-term savings, Most people with savings may face problems.

Belt-tightening measures

The recovery in interest rates has clearly had an impact on the debt side of household balance sheets. After global private debt rose 7.8% in 2564, growth fell sharply last year to 5.7%. In Asia, debt growth nearly halved, from 10.3% (2564) to 5.8% (2565). ) The most rapid decline occurred in China.

Last year's debt growth of 5.4% was the lowest on record. Overall, global household debt totaled €55.8 trillion at the end of 2565, of which 32% or €18.1 trillion was in debt. Asian household sector As the gap between debt and economic growth widens to 3.9 percentage points, the global debt-to-GDP ratio (debt as a percentage of GDP) will fall significantly by more than 2 percentage points to 66% in 2565.

This means that the global debt ratio for Private households are back to levels at the start of the millennium. This is a remarkable level of stability that is hardly consistent with the belief that the entire world is drowning in debt.

However, there have been important changes in the world's debt situation. First and foremost is Developed countries are stable in their development characteristics. On the other hand, most emerging markets have seen their debt ratios increase rapidly over the past two decades.

in Asia as a whole The ratio stood at 61% at the end of 2565, which is about 20 percentage points higher than the level from 7 years ago. This average represents some remarkable developments. In China, for example, the debt ratio has more than tripled. at 61%

Meanwhile, net financial assets around the world net financial assets fell sharply by 5.2% to €176 trillion. However, Asia rose 4.2% to €46 trillion, but not all countries in the region saw positive growth after deleveraging. In Japan, South Korea and Malaysia, net financial assets reduce Even if it's just a little bit