"Global Assets Expected to Decline by $16 Trillion in 2023 Due to COVID-19... North America and Japan Suffer Increased Losses"

[Image source=EPA Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] It is forecasted that the global asset size will decrease by $16 trillion (approximately 1,933.7 quadrillion KRW) this year alone due to the impact of the novel coronavirus infection (COVID-19). This amount is larger than the $10 trillion in assets lost during the 2008 global financial crisis.

According to Bloomberg on the 18th (local time), Boston Consulting Group (BCG) stated in the 'Global Asset Report 2020' that economic growth could be hindered over the next five years due to the worsening economy and increased volatility caused by COVID-19. BCG estimated that the global asset size this year would be around $210 trillion to $220 trillion.

BCG projected that in the worst-case scenario where the current level of damage from COVID-19 persists, the annual growth rate of global personal financial assets over the recent five years (from 2019 to 2024) would be only 1.4%. Considering that last year's growth rate was 9.6%, the largest increase since 2005, the asset size is expected to significantly decrease. If recovery is rapid, assets are expected to increase by 4.5% compared to the previous year.

Anna Zakrevski, BCG's head of asset management, explained, "If recovery is slow and damage continues, the most affected will be wealthy individuals such as millionaires and billionaires," adding, "This is because they are highly exposed to market volatility."

By region, Japan's asset size is expected to suffer the greatest impact, decreasing by 1.4% over the next five years if the current damage level is maintained. Following that, North American assets are also expected to decrease by 0.6%. On the other hand, BCG predicted that assets in Asia, excluding Japan, will increase by 5.1% over five years, showing the largest growth among all regions.

This content was produced with the assistance of AI translation services.